Member Article

Sales down 4.2% at Morrisons as 1,200 prices slashed

Bradford-based Morrisons has today reported that, as anticipated, the market has continued to be ‘competitive’ and that total sales excluding fuel were down by 4.2%.

In the 13 weeks to the 4 May 2014, total sales including fuel were down 5.6% and like for like sales were down 7.1% (8.2% including fuel).

The struggling supermarket announced plans to realise savings of £1 billion over the coming three years to “strengthen our business and reinforce our core customer proposition.”

The supermarket giant predicts that 200 convenience stores open by the end of the year and has cut prices permanently on over 1,200 of the products.

The firm predicts that through Morrisons.com, by the year end online business will reach up to 50% of UK households and, with convenience, is expected to account for over £500 million of annualised sales.

Dalton Philips, chief executive, said: “The plans we set out at our results in March are on track. The reaction of our customers to the 1,200 “I’m Cheaper” price cuts we announced last week has been very positive.

“Although it will take time for their full impact to be felt, we are confident that these meaningful and permanent reductions in our prices will enable our clear points of difference to resonate strongly with consumers.”

This was posted in Bdaily's Members' News section by Clare Burnett .