Morrisons is the UK's fourth-largest supermarket group

Like-for-like sales excluding fuel in the 14 weeks to 4 November rose 3.7%, at the top end of forecasts and up from 3% growth in the first seven weeks.

The UK's fourth-largest supermarket said it was "encouraged" by the growth.

However, the Bradford-based retailer added that it remained cautious on the outlook for consumer spending.

Despite this, chief executive Marc Bolland said that he was "delighted" at the progress being made by the company.

The roll out of the new branding is under way and set to be completed by 2008, Morrisons said.

The firm also said that its new advertising campaign, which features celebrities such as Alan Hansen, Lulu and Denise van Outen, has been "very well received" by customers.

"The current strong advertising campaign is clearly having an impact and Morrisons' attempts to carve out a niche are showing some signs of success," said Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers.