Last week Aldi announced that total United Kingdom sales were more than 15% higher during December compared to the same month in 2016, pushing them over the £10 billion barrier for the first time.
Aldi and Lidl, which between them account for nearly 12pc of Britain's grocery market, both grew by 16.8pc, as they continued to open new stores at a rapid pace.
The Bradford-based chain said the like-for-like retail sales performance in the 10 weeks to January 7 came as it resisted hiking prices despite surging costs, with the price of a basket of key Christmas items the same as past year.
Morrisons said it will be a rolling programme of around 25 additional McColl's stores each week.
Grocery spend in the four weeks ending 30 December hit £10.5bn, a 3.7 per cent year-on-year rise, according to Nielsen retail data released today.
The chain sold 2.8% more in the 10 weeks to 7 January than it did for the same period a year earlier, not including new store openings. Aldi's market share rose to 6.8% from 6.0%, while Lidl's increased to 5.0% from 4.4%, Kantar said.
It has also expanded its premium "Best" range of goods and rolled out an automated system for keeping shelves stocked.
"More and more customers found more things they wanted to buy at competitive prices at Morrisons this Christmas", chief executive David Potts who has led Morrisons turnaround by investing in price cuts.
That was well ahead of analysts' average forecast of growth of 1.7% and third quarter growth of 2.5%.
Online sales rose by 10 per cent as the retailer expanded the number of stores where customers could pick up good ordered on the internet.
Rival market researcher Nielsen also named Tesco the best Christmas performer among the major grocers on Tuesday, although Asda outpaced it in the shorter December period.
Morrisons said its expectations for the full 2017-18 year were unchanged.
"The hard work and friendliness of our colleagues continues to be key in delivering our strengthening performance, and I would like to thank them for everything they do for our customers".
Its wholesale business includes supplying the Amazon Fresh service and McColls stores, the latter with Safeway products and national brands.
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