Struggling supermarket chain Wm Morrison (MRW) reported a dire start to the year: like-for-like sales in the first-half fell 7.4 per cent, while underlying pre-tax profit slumped 51 per cent to £181m. Embattled chief executive Dalton Philips was quick to point out that Morrison was just six months into a three-year transformation plan that's designed to tackle the "unprecedented structural challenges" dogging the sector.
That strategy is focused on slashing prices, improving store layouts, cutting promotional activity and launching a loyalty card - all funded by £1bn of cost savings that management expect to squeeze from the business over the next few years. It's also selling of a lot of its freehold property. It disposed of £280m-worth in the period and expects to realise some £400m-£500m this year, rising to £1bn by 2017. In terms of the cost savings, £105m was saved in the half year as Morrison axed 3,000 jobs, reduced packaging costs and cut product ranges.