Press Association
Sunday 12th February 2012
Supermarket chain Morrisons has said it will trial new convenience stores next year in a bid to boost its market share.
Outlining plans for future growth, the UK's fourth biggest supermarket added it was investigating the possibility of an internet grocery operation, while work has also started on a new distribution centre in Bridgwater, Somerset.
The proposals, laid out by recently-appointed chief executive Dalton Philips, form a new strategic direction for the Bradford-based supermarket, and will increase competition with market-leader Tesco and other rivals with web operations.
The plans were announced as Morrisons posted a rise in underlying pre-tax profits to £410 million in the six months to August 1, up 14% on last year and slightly ahead of City expectations.
Mr Philips, who joined the group following Marc Bolland's departure to Marks & Spencer, said three convenience stores, each less than 3,000 sq ft in size, would open in the first half of 2011, but could not confirm locations.
He said the convenience market was growing at twice the rate of the overall grocery market, adding that Morrisons planned to offer fresh produce in its new smaller stores.
The chief executive said Morrisons would run a "limited geographical trial" of its planned online offering next year, but again could not specify where in the country.
He said: "We need to understand the online market better. It's got to work for the customer, but it's got to work for the business too."
