Supermarket chain Morrisons ditched its advertising slogan of more than 30 years yesterday as it unveiled plans for a #450 million makeover.

As well as a new campaign to replace the "more reasons to shop at Morrisons", the company will change its distinctive black and yellow logo and look to introduce new products, including more healthy and fresh food options.

Chief executive Marc Bolland, who took the helm from chairman Sir Ken Morrison last year, said his review was about "evolution, not revolution". The three-year investment drive in stores, manufacturing, distribution, systems and the environment should add about #200 million to annual profits by 2010.

It added it was also in talks to create a property partnership for around 25 of its stores and that this could be the first step to extracting more value from its properties.

However, Sir Ken said the firm had no current plans for a sale-and-leaseback of its largely freehold properties, which some analysts believe could be worth #8 billion.

Mr Bolland's plans emerged at the same time as Morrisons unveiled full-year results, which showed it on the recovery track after two years of difficulties integrating the supermarket chain Safeway.

Turnover was up three per cent to #12.5 billion, while profit before property gains and tax was up to #331 million in the year to February 4, ahead of the #54 million seen a year earlier.

Morrisons said like-for-like sales were up 5.2 per cent in the year, compared with 2.4 per cent a year earlier, but added that trading had been tough in recent weeks.

One priority for Mr Bolland will be to reduce staff turnover in its stores, which is currently higher than the industry average.

He pledged to improve communication within the group, which has 118,000 employees, as well as launch a staff discount scheme later in the year.

The review will also target efficiencies, with the introduction of more "shelf-ready" deliveries so products do not need unpacking. And self-scanning check-outs will be introduced later in the year.

The measures will result in reductions in staff costs, but Morrisons said this would be achieved over two years through natural staff turnover rather than redundancies.

Nick Bubb, a retail analyst at Pali International stockbrokers, said he was disappointed that the review by Mr Bolland did not go further.

He said: "There is nothing that we can see about getting into online retailing or non-food in a bigger way – to address the two main structural disadvantages of the business – and the aim seems to just deliver more of the same, as a food specialist.

"This will require lots of investment in new store systems and store revamps, but there is nothing radical."

Morrison has around 11 per cent of Britain's grocery market, behind market leader Tesco, Wal Mart-owned Asda and Sainsbury's.

Morrison, battling to recover market share, said it planned to position itself as "The food specialist for everyone", retaining its "market street" feel and its focus on low prices, but placing greater focus on fresh and healthy foods.