Retailers see tougher times ahead

MORE OF THE SAME FROM MORRISON

Morrison, whose new chief executive Dalton Philips starts this month, posted a 21 percent rise in profit before tax and one-off items to 767 million pounds for the year to January 31, driven by its focus on low prices and fresh foods.

That beat analysts' average forecast of 757 million in a poll by Thomson Reuters I/B/E/S Estimates.

Morrison also lifted its dividend to 8.2 pence a share, and showed confidence in the future by unveiling plans to open around 1.5 million square feet of selling space over the next three years, including about 60 large format stores.

Some analysts, though, were disappointed the group did not announce a new plan to replace a three-year drive to improve distribution and operating systems which ended in January.

They also want to hear whether the new CEO will follow rivals into markets like household goods, services and online.

"Good, but just more of the same," was the verdict of Collins Stewart's Greg Lawless, and Morrison shares were down 1.9 percent at 298.3 pence.

(Editing by Mike Nesbit)