UK grocer Morrisons has booked a drop in full-year profits, admitting its results fell short of expectations.
The supermarket group said this morning (14 March) that net profits were down 6% to GBP647m (US$966m) for the year ended 3 February as it admitted it had struggled to grow last year in a difficult consumer market.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Operating profit in the period amounted to GBP949m, down from GBP973m last year, while underlying profit before tax was down 4% to GBP901m.
The grocer said sustained pressure on consumer spending was reflected in its sales performance, with like-for-likes down 2.1%. Morrisons, which this morning announced a potential online food tie-up with Ocado, generated total sales of GBP18.1bn, up 3% on last year.
The grocer said its “below market” sales performance was “disappointing”, and that it had not done enough to communicate its promotions and value message lacked a meaningful presence in the two fastest growing sectors of the market: online and convenience.
CEO Dalton Philips said: “The sustained pressure on consumer spending was reflected in our like-for-like sales performance, which was not as good as it should have been. We have implemented a range of measures to address this and are making good progress in improving our promotional effectiveness and in communicating our points of difference.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
