Morrisons reports rising profits as shoppers slash weekly food budgets
SUPERMARKET chain Morrisons today reported annual pre-tax profits of £655 million, a rise of 7 per cent on last year.
The UK’s fourth biggest grocer saw like-for-like sales, excluding fuel, increase 7.9 per cent over the year to February 1.
The Bradford-based group said it was attracting 550,000 more customers through its tills each week, stealing market share from rivals as cash-strapped customers try to offset soaring food bills.
The retailer said it would share out a £34 million bonus pot between its 124,000 staff.
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Morrisons left competitors trailing over the key Christmas period with an impressive 8.2 per cent rise in comparable sales.
It has also re-launched cheaper lines, slashed prices and launched promotions - including Sunday lunch for four for £4.
But it said it was prepared for “extremely challenging” competition in the supermarket sector amid the recession.
Sir Ian Gibson, who took over as chairman from the chain’s founder Sir Ken Morrison last March, said: “These are challenging times for the UK economy, but whilst we are not complacent, we are confident that Morrisons’ offer meets and is in tune with the demands of our customers and the economic background.”
Morrisons plans to expand over the next year, adding 350,000 square feet of new retail space to the 500,000 square feet it has already bought from the Co-operative Group.
The company recently completed the rebranding of its stores as part of a three-year turnaround plan led by chief executive Marc Bolland, following the problems caused by its takeover of Safeway in 2004.
Mr Bolland told shareholders the company was scrapping further share buybacks in order to put cash back into the business for investment and expansion.
It has returned £146 million to shareholders so far under an original £1 billion buyback scheme, but will now halt the plans.
