Supermarket chain Morrisons has announced a store opening programme which will create 4,500 new posts.

Morrisons, the UK's fifth largest supermarket chain, said it will create 2,000 jobs at seven new shops this year.

The remaining positions will be created through the opening of at least further 10 outlets by the end of January 2004, bringing the company's total store count to 130.

The announcement, which came as the firm unveiled a 10.9% rise in profits, offers further hope for the UK jobs market, after figures on Wednesday showing a surprise decline in the number of Britons claiming unemployment benefit.

Heading south

The store expansion plans extend the company's strategy of expanding from its northern homeland.

"There are lots of areas of the country where we do not operate and we feel we have something to offer," said chairman Sir Ken Morrison, son of founder William Morrison.

Among locations for future stores are Redcar and Byker, Newcastle, in the North East, and Bristol, Kings Lynn and Cambridge in southern England.

Sales rise

Mr Morrison said a rise of 7.7% in like-for-like sales for the year to February followed the rolling out of a "multisave" programme, based around discounts such as two for the price of one offers, and designed to promote customer loyalty.

Sales growth had continued at 7.4% over the last six weeks, Ken Morrison said.

"While it is unrealistic to expect like-for-like growth to continue at present levels indefinitely, we are, for the time being, maintaining the momentum."

Pre-tax profits of �243m compared with �219m a year before.

In the City, Morrisons shares stood 6p higher at 212p in early trade.