UK grocery retail chain Morrisons has reported a major surgein profits for the first half of 2009, despite admitting that food priceinflation has continued to affect consumer behaviour.

In a statement issued today (10 September), the country’sfourth-largest supermarket operator said that underlying profit before tax forthe half year to 2 August 2009 was up by 22 per cent to €408m (£359m) from€335m (£295m) a year before.

Like for like sales at the retailer, excluding Value AddedTax and fuel, also increased to 7.8 per cent during the six-month periodcompared with the previous year’s 7.7 per cent.

During the half year, Morrisons opened 22 new stores, one ofwhich was a replacement and some 19 of which were acquisitions from theCooperative Group.

The retailer said in the statement that the consumerenvironment in the first half of 2009 had remained difficult, with shopperscontinuing to experience food price inflation, driven mainly by the effects ofthe weak UK pound.

However, Morrisons said that it had been able to increasecustomer numbers during the period thanks to a strong focus on value, as wellas “deeper, more attractive promotions” on fresh products.

The retailer said two major initiatives affecting its freshproduce business were also launched during early 2009.

The first was a major initiative, titled ‘Great Taste, LessWaste’ aimed at educating its customers in better food management.

The programme provides advice on improving the storage offresh food and has highlighted to Morrisons’ shoppers the benefits of keepingtomatoes at room temperature and apples in the fridge.

The retailer also launched a joint venture with the ScottishAgricultural College to farm 283ha with the aim of developing sustainable andcommercial farming models.

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