Morrison sees full-year ahead of expectations

21st Jul 2009 07:04

Supermarket chain Wm.Morrison is confident full year results will be ahead of its earlier expectations due to continuing customer growth and the successful implementation of its cost cutting plans.The group said the strong start to the year has been maintained through the second quarter. "An increasing number of customers are shopping with Morrisons attracted by the Group's fresh offering, keen positioning on price and promotions and its industry leading service and availability. This provides a solid base for the remainder of the year," it said.It said the resultant volume growth is helping to deliver operating leverage through supply chain benefits. "Together with better than projected improvements from our Optimisation Plan margin initiatives, our ex-fuel gross margin for the full year is now expected to exceed our original plan by approximately 40 bps, said the group.Morrison said the remaining Optimisation Plan initiatives are progressing well and are also expected to exceed its expectations by £20m.