The slow climb

11 January 2006 By John Foley Follow @johnsfoley

After five profit warnings, the UK retailer is finally meeting expectations. Many stores with new formats are doing better than expected. With the company due to unveil new restructuring plans in March, investors will be hoping it has turned the corner.

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Wm Morrison said likeforlike sales grew 2.8% in the six weeks ending January 8, excluding sales from petrol. Sales in the troubled UK retailer's core estate – those branches predating its merger with rival Safeway in December 2003 – slipped 2.9%.

Where stores had been converted from Safeway to Morrison, likeforlike sales grew 9% excluding fuel. Sales in those stores converted more than a year ago rose 5.7%.

Morrison said at its interim results on October 20 that it was putting together an "optimisation plan", led by new finance director Richard Pennycook. The plan is set to be unveiled in March 2006, when Morrison releases its preliminary results.

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