Morrisons leads festive sales

 
WM Morrison, supermarket chain reported far stronger seasonal sales than its larger rivals but but echoed the same concerns that their larger rivals Tesco & Sainsbury’s that the consumer economy will remain challenging throughout 2010.

Morrisons reported that like-for-like sales over the six weeks to January 3 rose by 6.5pc, excluding petrol and VAT. The figure compares to 4.9pc at Tesco and 4.2pc at J Sainsbury, although all chains reported for slightly different time-frames. Total sales at Morrisons rose by 11.2pc, excluding petrol.

Despite the strong sales, the company disappointed some observers by making no announcement on the identity of its new chief executive, after Marc Bolland's decision in November to take the helm at rival retailer Marks & Spencer. Morrisons merely said that the search for a successor was "progressing". It added that it remains in "constructive" negotiations with Mr Bolland over when he will be formally released from his contract.

The trading update went down well in the City. Justin Scarborough, analyst at Royal Bank of Scotland, was effusive in his praise for the chain's performance.

"This is the fourth consecutive Christmas that the company has outperformed the industry, and this is without the benefit of non-food, which Tesco, Asda and Sainsbury have. Cumulatively over the past four years, Morrisons has increased its sales by nearly 40pc over Christmas, which is unprecedented," he said.

Financial institutes have described Morrisons' Christmas as "bumper". In a note entitled Really Rather Splendid, Ambrian Partners analyst Philip Dorgan said that Morrisons'  figures are the "final confirmation that the food retailers had an excellent Christmas"."Morrisons' Christmas trading statement was very strong," he said.

Sir Ian Gibson, Morrisons' chairman, said: "Once again our distinctive offer, eye-catching promotions and relentless focus on our core strengths of fresh food and great value combined to help customers have a great Christmas.