Morrisons has reported a 18.5 per cent rise in profit to £295 million for the first half, attributing the strong performance to its "price-crunching deals".
Like-for-like sales, excluding fuel, were up 7.6 per cent, while like-for-like sales including fuel shot up by 31.6 per cent.
Customer numbers were up by 4.7 per cent in like-for-like stores, Morrisons added.
The supermarket has been focusing on its price credentials and slashed the cost of petrol last month, triggering a price war with rival supermarkets.
Non-executive chairman Sir Ian Gibson said: "This is a solid set of interim results in the toughest trading environment seen for many years.
"The management team is very focused on delivering great day to day value to our customers as well as the longer term vision of being the food specialist for everyone."
Chief executive Marc Bolland added: "More shoppers are choosing Morrisons because of our price-crunching deals and our unrivalled fresh offer in store."
The grocer said it has plans to expand and plans to open eight new stores in the second half of the year.
Morrisons is also increasing its interim dividend by 18.5 per cent to 0.8p per share.
Digg 
Delicious 
Reddit 
StumbleUpon 
Google 
Technorati 
Netvouz