WM Morrison (MRW) chief executive, Dalton Philips, has resigned as the supermarket chain reported a 3.1 per cent decline in like-for-like sales over the Christmas period.
Mr Philips' tenure at the helm of one of the UK's biggest supermarkets has been fraught with difficulty, as he struggled to stem falling sales. He faced criticism for alienating core shoppers by trying to take the stores upmarket and being slow to introduce loyalty cards and online shopping. Mr Philips also oversaw the disastrous acquisition of childwear business Kiddicare for £70m in 2011. It was sold last year for just £3m following a substantial write down. Chairman Andrew Higginson, who has been promoted from deputy chairman, said the supermarket needed new leadership to return to growth and would be "casting the net wide" to find an experienced retailer and not "someone with L-plates".
Morrison's Christmas trading performance marked an improvement on the 6.3 per cent decline reported in the third quarter, but comparatives were soft: last year, revenue over the festive period dipped 5.6 per cent. The supermarket also announced plans to close 10 unprofitable stores. Full-year pre-tax profit is expected to more than halve on last year's earnings and range from £335m to £365m, after £135m of exceptional costs.
