Morrisons: worst profit results in nearly a decade

12 March 2015

morrisons Morrisons have reported their worst results in eight years. The supermarket's pre-tax profits fell by more than half from the previous year, down by 52% to £345m.

Chairman Andrew Higginson said: "This has been a controlled and a planned reset of the business - it is painful, but it is the start of a new growth period we hope."

Morrisons are going to slow down the rollout of their M shops, and they would be closing 23 M local stores through 2015 while reviewing their "site selection criteria" as they proceed. As a result of all this, the company's shares dropped by more than 2%.

"Last year's trading environment was tough, and we don't expect any change this year," said Higginson in a statement.

Through all this, Morrisons is fighting against falling sales, with same-store sales dropping by 5.9% for the full year. This means they're going to start slashing the prices of products in a bid to get people back through their doors, but dropping the prices on products no-one wants could be a problem for the supermarket.

Can the new chief executive, David Potts, turn things around for the ailing business, or is he doomed to failed because no-one cares?

TOPICS:   High Street News


  • Albi
    When you announce price cuts again and again and again it just makes people think they must have been overpricing their products in the past, so who's to say they aren't just as expensive today? Especially when cutting prices usually means knocking a penny off.
  • James D.
    Since when is a business that makes 345 million quid ailing.
  • Martin
    They deserve it. They've pissed away their chances. Should have gotten into online shopping along with everyone else and now them trying to start off but ignoring the majority of their customers has just made us want them even less.

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment