Sainsbury's threatened legal action against Jel Singh Nagra unless he took down the original sign outside his shop in West Allotment, North Tyneside.
He complied but said locals still called it Singhsburys because the name had stuck.
But after a major re-fit, customers told him it was time for a new name so the 42-year-old came up with Morrisinghs.
And the retail giant seemed to welcome the tribute, as a Morrisons spokesman said: "Mr Nagra and his customers obviously have good taste so we wish him well."
Mr Nagra said: "It's just meant as banter.
"I know about 90% of our customers are local. There's little passing trade.
"I wanted to put West Allotment on the map."
Mr Nagra welcomed Morrisons' response to his choice of name.
"We are not in competition with them," he said.
"I take my hat off to them - well done to them. This is all meant in jest."
A Sainsbury's spokesperson said: "We were grateful to Mr Nagra for removing the sign."