Morrisons sees a 7 percent increase in profits as demand for cheap food increases

The current economic downturn has been fruitful pickings for some supermarkets such as German giants Lidl and Aldi who have experienced substantial growth within the credit crunch.

That leaves other supermarkets to manoeuvre and develop their brand image in order to be successful in these tough times as shoppers are increasingly concerned about value for money and savings.

Morrisons has been the latest beneficiary as the fourth largest supermarket chain in Britain has been able to grow in the recession and announced a 7 percent increase in the years profits and customers have flooded the stores looking to but its cheaper range of food.

Operating from 375 stores in the UK the chain announced that its 124,000 staff would also stand to benefit form the £34 million bonus pot.

During the year turnover increased by 12 percent to £14.5 billion whilst like for like sales were up by 8 percent from the previous financial year.

The stores have been able to attract 550,000 more shoppers each week and strong growth has been seen in its lower priced food where sales have surged having doubled from last year.

According to the latest research by TNS, Morrisons has increased its market share from its traditionally pricier competitors such as Tesco, J Sainsbury, Waitrose and Asda.

Story link: Morrisons sees a 7 percent increase in profits as demand for cheap food increases