SUPERMARKET group William Morrison has seen "no let up" in the intense competition among supermarkets for shoppers' custom.

With supermarket chains increasing the stakes in the price war by announcing regular price cuts, competition on the high street has become tougher in recent times.

Sir Kenneth Morrison, chairman of the 100-plus stores group, said he was confident about the firm's future.

He said: "The market continues to be tough, and whilst I foresee no let up in the intense competition in our industry, I am confident that the company will continue to prosper."

Morrisons said that it had given shoppers £113m of price cuts and promotional savings and continued to increase market share as shoppers "vote with their feet and their purses".

In the half year to August 12, Morrisons' pre-tax profits rose by eight per cent to £98.6m and turnover jumped by 15 per cent to £1.97bn.

However, Sir Kenneth struck a note of caution regarding the impact last week's terror attack in the US could have.

He said: "The worrying thing is the effect on the overall economy and of course we are not immune to that.

"There won't be a direct effect because there is very little of US produce we sell, but psychologically people may tighten their purses."