Morrison checks in soaring sales

SALES at supermarkets group Wm Morrison have jumped almost 10% in recent weeks, a performance which outstrips even industry leader Tesco and is significantly ahead of other food retail rivals.

Chairman Sir Ken Morrison said that while the Safeway bid has been 'uppermost in our minds', the Bradford-based group has refused to be deflected from managing its existing business.

A ruling on the Safeway auction is expected within weeks and is 'eagerly awaited' by Morrisons, which first set the bid battle rolling back in January, when it launched its £2.9bn offer.

Sir Ken said the group has made a strong case to the Competition Commission but added: 'Whatever the outcome, we have the ability to prosper and extend our run of good results'.

Profits growth over the first half was not quite in the Tesco league, but still rose by just over 10% to £126.2m before tax.

Turnover was up by 14.8%, to £2.48bn, with the like-for-like figure rising by 9%. That gain has been extended to 9.6% in the first five weeks of the second half, or 9.1% excluding petrol.

Publicity from the takeover battle has helped Morrisons win more customers and average store takings have risen by 7%.

'Consistently low prices when combined with money-saving offers continue to be attractive to the shopper and increase both sales and loyalty,' Sir Ken said.

New store openings will take the Morrisons chain to 125 by the end of this year and six new sites are under way for the following year.