Boost for Morrison's

Morrison's profits

Despite the current worldwide financial recession, Bradford based William Morrison Supermarkets PLC reported a sharp jump in profits up to the end of 31 January, due in part to its discount food and beverage lines.

Morrison's net income climbed to GBP£598 million (22.4 pence a share), from GBP£460 million (17.16 pence a share) in the year-earlier period, they said in a statement. Pretax profit climbed over 30 percent to GBP£858 million, well ahead of the fore-casted GBP£759 million.

Adapting to the market

Morrison's - the smallest of the four large British supermarket chains - adapted to the suppressed economic market by introducing over 30,000 price cuts, including promotions such as 'Big Price Crunch' and 'Essentials for Less.' Morrison's 'Value' range also saw an increase of 34 percent. 2009 saw the company opening 43 stores, taking its total number of stores to 425.

"We expect the economic environment to remain challenging, disposable incomes to be under pressure and value to remain a high priority for consumers," said chairman Ian Gibson.

Morrison stock has climbed 9.7 percent this year, compared with Tesco PLC’s 2.4 percent gain and J Sainsbury Plc’s 3.9 percent increase.

The grocer, which appointed former Loblaw Cos. Executive Dalton Philips to succeed Chief Executive Officer Marc Bolland this month, increased its market share to 12.3 percent in the 12 weeks to 21 February, according to market researcher Kantar, Business Week reports.

The retailer said it plans to add 1.5 million square feet of selling space in the three years to January 2013.

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