Morrisons beats rivals with Christmas sales surge

Supermarkets group Wm Morrison today reported cracking Christmas sales, outstripping its larger rivals with a jump of 6.5%. The group, Britain's fourth-largest supermarkets chain, said total sales for the six weeks to 3 January were up by 11.2%, excluding fuel. The 6.5% increase in underlying sales, which strip out contributions from new stores, was ahead of analysts' expectations. Chairman Sir Ian Gibson said the group served a record number of customers over the festive season and had continued to outperform the market. The group remains cautious on the outlook for consumer spending and says the market will remain challenging. "In this environment we believe Morrisons value credentials will serve us and our customers well." Morrisons is still searching for a chief executive to replace Marc Bolland, who was poached by Marks & Spencer to run its food business. Bolland is on gardening leave at Morrisons and the group said today it is still in talks with him on a departure date. Morrisons' performance is the strongest of the big four grocery retailers, although all did well in December as shoppers splashed out on festive fare . Tesco, Britain's biggest retailer, enjoyed its best Christmas in three years , luring shoppers into its stores with the offer of extra Clubcard points and money off vouchers. Underlying sales in its UK chain grew by 4.9%. Sainsbury's, Britain's third-largest food stores chain, also beat City forecasts, reporting a 4.2% rise in like-for-like sales . One of the biggest winners over Christmas was the John Lewis-owned Waitrose chain, Britain's fastest-growing food retailer , which notched up its biggest sales and market share gains since 2005.