NORTHERN supermarket chain Morrisons yesterday said store openings by its biggest rivals had hit Christmas sales.

The group, based in Bradford, saw like-for-like sales increase by 0.1 per cent.

But sales at the converted Safeway stores it bought last year, were 4.7 per cent higher in the six weeks to January 9, compared with the same period last year.

The group has also reversed a decline in sales at stores still trading as Safeway and said it was on track to meet pre-tax profit expectations for the year to the end of January.

Sales at converted outlets were down 8.4 per cent during the festive period, an improvement on a drop of 10.1 per cent announced in October.

Total Morrisons sales were 31.9 per cent higher as the group benefited from two store openings and the Safeway conversions.

Like-for-like sales at Morrisons stores for the year so far were up five per cent, while Safeway sales were down 9.1 per cent.

Anthony Platts, assistant director at Tees Valley stockbrokers, Wise Speke, said: "Those Safeway stores converted to the Morrison format have seen huge increases in sales per square foot.

"A worrying aspect for Morrisons is that those Safeway stores that have had to be sold on to rival groups due to competition rules have since also done very well, proving that Morrisons does not have a unique magic store formula.

"While some shoppers have store loyalty, it is becoming clear that convenience, irrespective of the name above the door, is paramount."