Morrison's chief executive Dalton Philips has revealed that the British supermarket chain will open its first tranche of convenience stores next year, and may decide to start selling groceries online. Philips made the announcement at the release of the retailer's H1 results, which cemented Morrison's position as the UK's No.4 supermarket.
First-half total sales at Morrison's rose 9.1 per cent to £8.1 billion, up from £7.5 billion a year ago. Net profit in the same period fell to £286 million from £309 million last year. It is confident of achieving low market growth for H2, in line with company expectations.
Commenting on the results, Justin Scarborough, an analyst with Royal Bank of Scotland, said:" Unsurprisingly, in our view, Morrison’s expects the trading environment to be similar to that experienced in 1H, a theme that Morrison’s management has been stressing since the start of the year. Offering value and continuing its cost disciplines, should ensure ongoing profit growth. Morrisons is confident of delivering its profit expectations for the year." (9 Sept) © 2010 - ESM: European Supermarket Magazine
