Supermarket chain Morrisons announces that it is to shut 11 stores with a potential loss of 900 jobs as part of its £1 billion cost-saving programme in order to transform the company’s fortunes. Morrisons also reported a 47% drop in half-year pre-tax profit to £126 million and the sale of 140 of its local convenience stores.
Morrisons are not the only ones suffering from falling sales, Waitrose has also reported its first sales dip in seven years as it was forced to cut prices to compete with cheaper rivals. All this underscores the revolution underway in food shopping as an increasing number of consumers are turning away from supermarkets in favour of buying more of their groceries either online, from local convenience stores or at the discount chains of Lidl and Aldi. Despite this, Morrisons still remains optimistic about its future stating that customers are still wanting value for money and are beginning to notice improvements, but it remains cautious that this will take time.