The UK’s fourth biggest supermarket Morrisons boasted success in a price war with its rivals today as it reported a better-than-expected rise in annual profits.
Morrisons chief executive Dalton Philips said its budget M Savers range had received a strong response and the supermarket offered "promotions that customers understood".
Tesco sparked a battle with its competitors last September when it unveiled the Big Price Drop campaign, prompting Sainsbury’s, Asda and Morrisons to follow suit.
Morrisons, which has 455 stores in the UK, recorded an 8% rise in underlying pre-tax profits to £935m in the year to January 29, as like-for-like sales excluding fuel and VAT rose by 1.8%. The City had been expecting profits of around £922m.
The group pledged to roll out smaller convenience formats throughout 2012 after the successful trial of three stores last year, but there was still no movement on plans to sell online, which are not expected to be revealed until the end of the current financial year, which is in January.