Morrisons LFL sales fall 2.7 per cent

Morrisons will close 11 supermarkets and sell 140 of its convenience shops after reporting that like-for-like sales fell by 2.7 per cent in the first half of this year.

The half-year results to 2 August also saw total turnover fall by 5.1 to £8.1 billion while pre-tax profit fell by almost 50 per cent to £126 million.

M Local convenience shops, in the process of being sold, will be re-branded as ‘My Local’ with the 2,300 staff kept on. An extra 200 jobs are to be created by reopening 10 shops that are currently closed, the BBC reported. They are understood to have been bought by convenience veteran and former Spar man Mike Greene, backed by investment firm Greybull, according to the Telegraph.

Chief executive David Potts said he expects profit to be higher in the second half of the year, but stressed that recovery will be “a long journey”.

“The immediate priority is to deliver a better shopping trip to stabilise trading performance. Our six strategic priorities will then deliver improvement in the core supermarkets, where we have the greatest opportunity,” he said.

“It will be a long journey. We approach the challenge with energy, confidence and many strengths, particularly our strong balance sheet and cash flow, which enables investment in improving the customer shopping trip.”

Morrisons also named two new non-executive directors – Belinda Richards and Irwin Lee.

Chairman Andrew Higginson said: “David has very quickly formed a new team that combines the best of Morrisons home grown and external talent. I am also delighted that two new non-executive directors – Belinda Richards and Irwin Lee – have recently joined and strengthened the board. They bring a wealth of experience, which will prove invaluable to Morrisons.

“During the first half, the team has made good progress in starting the turnaround journey. While the management team need time to settle in, make the changes they see as important, and build trading momentum, I believe the team will deliver much improved profits and returns for shareholders.”