Morrisons targets London for faster growth

Morrisons today confirmed its status as the fastest growing of the big supermarkets as it plots further expansion across the country, particularly in London.

It has 425 stores but believes 600 is achievable before long.

Finance director Richard Pennycook said: "We want to take Morrisons to parts of the country where we are not well represented. There are seven million households that don't have easy access to a Morrisons."

The chain's share of the London market is half what it is elsewhere, though Pennycook concedes that planning issues may make it harder for Morrisons to open stores as large as it would like.

Today Morrisons announced profits for 2009 of £858 million, up from £655 million a year earlier. Sales rose 6% to £15.4 billion and the dividend is up 41% to 8.2p.

Pennycook recently missed out on the chief executive's job, but insists he is not looking to move on. "It is a fantastic place. We have got really good momentum and I am very happy doing what I am doing," he said.

The new chief executive, Dalton Philips, starts late this month, replacing Marc Bolland who has decamped to Marks & Spencer.

Morrisons says it is stealing customers from Tesco, Sainsbury and Asda with its focus on fresh food.

Keith Bowman at Hargreaves Lansdown Stockbrokers said: "A consumer emphasis on value continues to fuel prospects for Morrisons. Profits have exceeded analyst forecasts, whilst a rock-solid balance sheet is underwriting a new store investment programme."

The shares fell 5½p to 298.7p.