The Wall Street Journal-20080123-U-K--s Morrison Posts Strong Sales
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U.K.'s Morrison Posts Strong Sales
United Kingdom supermarkets are set to ride out a consumer-spending downturn better than most players in the country's general retail sector -- but it won't be easy, as competition is expected to heat up.
William Morrison Supermarkets PLC reported solid sales for the key Christmas period. Morrison credited the gains to increased advertising, price cuts and a wider offering of fresh food.
The sales boost came at the expense of its rivals, particularly market leader Tesco PLC, which last week reported disappointing sales figures.
Morrison posted a stronger-than-expected 9.5% rise in comparable sales from stores open at least a year, excluding fuel, for the six weeks ended Jan. 6. Total sales rose 12% in the period.
Morrison says it expects the market to stay competitive and adds it is cautious about the outlook for consumer spending.
