Morrisons unveils 4.2% sales slump

Morrisons revealed a deeper slump in sales as the effects of a price war in the supermarket sector continued to bite

Morrisons supermarket
Morrisons supermarket

Morrisons revealed a deeper slump in sales as the effects of a price war in the supermarket sector continued to bite.

The Bradford-based chain said like-for-like sales - trading in stores open for longer than a year - dived by 7.1% in the 13 weeks to May 4.

This was much weaker than the 4.5% drop forecast in the City and meant overall sales were down by 4.2% in the first quarter of its financial year.

Last week, Morrisons launched an “I’m Cheaper” campaign which cut prices across 1,200 products by an average of 17%.

The move came after Britain’s fourth biggest supermarket stumbled to a £176m annual loss in March and issued a profits warning, sending shares down 12%.

Morrisons has warned that like-for-like sales are unlikely to improve anytime soon as lower prices reduce actual sales going through the till.

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