ONE of the north's biggest supermarket chains announced yesterday that it will create 4,500 jobs in the next two years, as part of a huge expansion drive.

Bradford-based Wm Morrison is looking to open more stores in the south of England and Wales, to capture customers from its rivals.

The supermarket chain is the fifth biggest in the country, but the majority of its stores are in the North-East and Yorkshire, where the grocer continues to grow in popularity.

Up to 2,000 staff will be taken on this year as Morrisons opens seven stores, with the balance recruited in 2003 for a further eight new sites.

Chairman Sir Kenneth Morrison said: "There are lots of areas of the country where we do not operate and we feel we have something to offer."

More than 3.5m people shop with Morrisons on a weekly basis, ten per cent up on a year ago despite intense competition from the stores such as Tesco and Asda.

The grocer has 113 stores and has turned its back on modern fads such as home-shopping and loyalty cards. Sales have continued to rise, with turnover up 11.9 per cent to £3.92bn in the 12 months to February 3.

Like-for-like sales growth, which excludes new stores, was 7.2 per cent and 7.7 per cent once petrol takings were stripped out. The jump saw pre-tax profits surge to £243m, compared with £219.1m in the prior year.

The group's continuing expansion has been reflected by the growth in its share price, and Morrisons joined the blue-chip FTSE 100 Index last April.

Its shares rose four per cent yesterday, leaving the grocer on course for its highest close since November.

Shareholders will receive a total dividend of 2.20p, up from 1.80p last time.