It may have taken a recession but it appears that the South is finally succumbing to the Yorkshire charms of Wm Morrison.

Four years after it boldly ventured from its Northern heartlands by acquiring Safeway, the supermarket yesterday reported sales growth that outstripped Tesco, thanks to new customers in the South.

Two years ago the Safeway acquisition appeared to have backfired as investors blamed Sir Ken Morrison, who built the chain, for steering the group into territory where palates were supposedly more accustomed to pâté en croute than pork pie.

That march south was heavily criticised at the time and added pressure for Sir Ken to step back from the day-to-day running of the company after more than 50 years. Yesterday his strategy was proved right.

In a further sign of its rehabilitation from the Safeway debacle, which triggered a string of profit warnings, Morrisons announced that it was to buy 38 Coop stores for £223.1 million.

Neil Saunders, consulting director of Verdict, the retail analyst, said: “With hindsight, people will recognise Sir Ken laid a platform that propelled Morrisons into the big league. In the North, Morrisons had resonance, people knew what it stood for. But in the South, almost overnight, Safeways changed to Morrisons, with very little education or explanation of what it stood for.”

Like-for-like sales, excluding fuel, were up 8.1 per cent in the three months to November 2 and the supermarket says it has attracted an extra 700,000 customers from the beginning of the third quarter last year.

The figures eclipse the 2 per cent nonfuel like-for-like growth posted by Tesco.

According to TNS Worldpanel figures, Morrisons picked up nearly £10 million of sales from Tesco in the 13 weeks to November 2.

Morrisons has invested heavily in celebrity-strewn adverts featuring Alan Hansen and Diarmuid Gavin, among others, and aggressive promotional offers. It has also relaunched cheaper lines, including a Sunday lunch for four for £4, which it said attracted 250,000 shoppers. This Christmas its campaign features Richard Hammond and Denise van Outen, who are pitched against Des O’Connor for Tesco and Jamie Oliver for Sainsbury’s. Asda has eschewed celebrities this year.

Nearly 10 million customers a week shop at Morrisons, giving it a market share of 11.4 per cent, against Tesco’s 30.9 per cent. Asda has a 17.1 per cent share of the market and Sainsbury’s has 15.9 per cent.

Marc Bolland, the chief executive, said: “We’ve attracted an enormous number of extra customers, particularly in the South. They’re buying full baskets, not just promotions.”

The group has 20 stores in Greater London and 150 in the South. Mr Bolland added: “Not only are we attracting more people in the South but a different demographic. Having a very strong value offer, we attract people in times of economic difficulties. But at the same time, the range is so strong that the more affluent shopper can find what they want.”

Mr Bolland said the supermarket would tightly control costs as food inflation eased. “We were the ones who brought petrol below £1 [a litre], we were the ones who brought petrol below 90p,” he said. “Everybody should do his bit to boost the economy, consumer confidence and spending.”

However, analysts struck a note of caution. Sam Hart, of Charles Stanley, said: “Don’t get overexcited. It was against very easy comparatives and they will get tougher. A significant proportion of the growth will be accounted for by food price inflation.”

Analysts at JPMorgan said that Morrisons had appeared to overpay for the 38 Coop stores, pointing out that in 2004 it had sold 117 former Safeway stores to Somerfield for £260 million and was now paying 86 per cent of that for less than half of the space.

Shares in Morrisons fell 5.75p, or 2 per cent, to 244.75p yesterday.

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