YORKSHIRE retail giant Morrisons is expecting good news this week.

The UK’s fourth biggest supermarket chain should take the loss of chief executive Marc Bolland in its stride on Thursday with annual results expected to show strong sales and profits growth.

Consensus forecasts for the Bradford-based grocer put underlying pre-tax profits for the year to February at £759m, well ahead of last year’s £636m.

Morrisons outperformed the wider market for the fourth year in a row during the festive season, after revealing sales for the Christmas trading period up 6.5% on a year earlier, putting its larger rivals in the shade.

This should settle the nerves of investors facing life after Bolland, who has left to join Marks & Spencer on a £15m package after masterminding the revival of the supermarket, which has 422 stores.

His successor Dalton Philips joins later this month.

He is a relative unknown in the UK retail world, but boasts an impressive CV as a former executive of US giant Wal-Mart and chief operating officer of Canadian food group Loblaw.

Royal Bank of Scotland analyst Justin Scarborough said: “We believe he is joining a business that is in pretty good shape, with a clear strategic direction and one with much potential for growth.”

Mr Philips is likely to take some time getting his feet under the table at Morrisons before unveiling a new direction for the company later in the year – although the grocer will have its work cut out staying ahead of its rivals.

Mr Scarborough added: “We believe that trading conditions in the UK grocery market are likely to remain as competitive as ever although, as the year progresses, the deflationary impact of lower food prices should recede.”