Morrisons has confirmed that it is weighing up the case for an online grocery store - and will make a decision early next year.

Chairman Sir Ken Morrison, announcing the retailer's latest results this week, said: "We are looking at that and we will deliver a view on it in March."

Earlier this month we revealed how Morrisons was assessing its e-commerce potential following trials of its weekly Best Buys leaflet online.

Morrisons reported a total turnover of £5.85bn for the 25 weeks to 23 July, with like-for-like sales up 4.6%, excluding fuel. Pre-tax profit grew to £134.2m, following a loss of £82.1m last year. Sir Ken also said that in-store merchandising would feature prominently in a business review to be conducted by newly arrived CEO Marc Bolland.

City analysts warned that competitive pressures could eat into Morrison's margins, despite an assertion by Sir Ken during a press conference that price wars were over in the grocery industry.