Morrisons meets forecasts after value push in UK

Supermarket Morrisons today said its value ranges had helped it bring in half a million more customers every week as hard-pressed shoppers looked to cut food bills.

The firm, which relaunched cheaper lines and slashed prices on several everyday items to 50p, said like-for-like sales excluding fuel rose 7.6% in the 26 weeks to August 3.

This improves on the 7% growth seen in the first quarter, as shoppers looked harder to find the better deals amid fierce competition in the sector.

“During the period the slowdown in the economy inevitably led to a focus on value,” Morrisons said.

Underlying profits at the UK’s fourth biggest chain rose 19% to £295m (€370.5m) in the first half, in line with City forecasts.