Shares in supermarket chain WM Morrison (MRW) were dealt a blow as the retailer announced a 5.6 per cent decline in like-for-like sales in the six weeks to 5 January. Management blamed the weak Christmas performance on a wider slowdown in the market and squeezed household spending, but the supermarket also lost business to hard discounters such as Aldi and Lidl.
Chief executive Dalton Philips admitted that sales performance had been "disappointing" and said difficult market conditions had been compounded by the growing importance of online and convenience, two channels into which Morrison has only just entered. Targeted couponing was particularly widespread over Christmas, but again, Morrison was unable to compete with rivals as it doesn't operate a clubcard or loyalty scheme. Full-year underlying profit is now expected to be at the bottom range of market expectations of £783m to £853m. Morrison is also reported to be looking at selling off 10 per cent of its freehold property to raise roughly £800m in cash.
