Morrisons sales on the slide, again
In 'lets all blame Lidl and Aldi!' news again, Morrisons has reported another quarter of falling sales. Like-for-sales fell 2.6%, and it isn't surprising when you consider this decline has been consistent for some years now.
"The business is moving at pace on the long journey towards improving the shopping trip for customers,” said David Potts, chief executive. “Our priorities for the rest of the year are unchanged - to stabilise trading, reduce costs and further improve the capability of the leadership team. We are making good progress in many areas and customers are noticing improvements."
Of course, the supermarket sold off their 140 M Local shops earlier this year, and have also closed a number of supermarkets that weren't making the company any money. They also booked a £1.3bn write-down on the value of its supermarkets.
Morrisons have said that they're getting rid of complex promotions, and all those other things that consumers just don't like. They introduced a confusing price-match scheme, but quickly ditched it when they realised no-one wanted it. There's more expense coming their way, as they're being sued by their own staff over a data breach.
However, they're giving themselves a good name, with schemes like the one where they're going to give unwanted food to charities and community groups.
With Aldi and Lidl keeping prices low, rather than offering bewildering deals and schemes, Morrisons would do well to crib notes from their German cousins.