Shares in supermarket group, Wm Morrison Supermarkets PLC (LSE: MRW) jumped 6% in early deals after the company reported better than expected trading for the first six months of 2009.
The FTSE 100 climbed 0.4% in the first hour of trading, but Britain’s fourth largest supermarket chain was the stand out leader.
In a short statement to the market this morning, Morrison’s reported that trading in the second quarter had continued to be robust, and that sales growth for the first half were “well ahead” of the market. “An increasing number of customers are shopping with Morrisons attracted by the Group's fresh offering, keen positioning on price and promotions and its industry leading service and availability. This provides a solid base for the remainder of the year,” the company stated.
The FTSE 100 constituent further noted that the increase in volumes benefited margins through economies of scale. As a result, the full year gross margin is now expected to be 40 basis points ahead of management expectations.
“The business' performance to date, the successful implementation of the Optimisation Plan and its continuing customer growth now give the Board confidence that the company's full year results will be ahead of its earlier expectations.”
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