Morrison still nosing ahead says director

Richard Pennycook, speaking on the sidelines of the British Retail Consortium's annual conference, said the first quarter was probably the low point for the market because it compared with a period last year when food prices were rising strongly.

However, weak consumer spending and little sign of food price inflation this year was likely to keep growth subdued.

"Quarter two is not going to be great, either. Back end of the year probably starts to tick up a little, but I don't think anyone's talking about much growth in 2010," he said.

Shares in the Bradford-based supermarket chain were hit hard last month when it said first-quarter sales growth at stores open at least a year slowed to 0.8 per cent, excluding fuel and VAT sales tax.

The firm said this still put it ahead of rivals and Pennycook said results from industry number one Tesco and number three J Sainsbury next week would confirm this.

"I think they will confirm what we said – big slowdown in the market (and) from our point of view a nose ahead."

Pennycook denied speculation that, having missed out on the top job at Morrison, he might soon leave the business.

Asked if he'd be around in September, when new chief executive Dalton Philips will set out his strategy, he said: "I'll definitely still be there."