Morrisons to retain top spot

Morrisons is expected to report an increase in annual sales and profits this week as the supermarket continues to outperform its peers.

City analysts forecast the grocery giant will post a 10% rise in underlying pre-tax profits to £371 million and a like-for-like sales increase of 2.7% when it reports to the market on Wednesday.

George Salmon, equity analyst at Hargreaves Lansdown, said investors will be keen to know what is driving sales.

“We expect the group to round off its financial year with another positive showing,” he said. “To what extent growth is being driven by higher prices, and how much is coming from higher sales volumes, are the real questions.”

Supermarkets across the board have had to increase shop prices as costs have risen since the pound’s collapse following the Brexit vote.

Morrisons has been among the sector’s strongest performers over the past 12 months, with a turnaround led by CEO David Potts bearing fruit.