Morrisons (LON:MRW) has announced plans to close 11 of its stores, in a effort to reverse the fortunes of the struggling supermarket chain.
The company disclosed a 35 percent slump in first-half profit to its lowest level in nine years, with like-for-like sales for the period up to August dropping 2.7% compared with the same period last year.
in annual sales, made an underlying pre-tax profit, before restructuring costs, of 141 million pounds in the six months to August 2, in line with forecasts.
The company said the turnaround for Morrisons would be a slow process:
“Customers and colleagues are beginning to notice improvements, but the turnaround will take time.”
New Chief Executive, David Potts, said:
“This is a difficult decision but one which we cannot see any way through to make those stores viable.”
Overall turnover fell 5.1 percent. Earlier this week, the company finalised a deal to sell its 140 convenience stores in order to focus on improving the bigger supermarkets.
Morissons are trading down 4.03 percent on the news, at 168.81 pence per share (0837GMT).
