Morrisons has posted its first annual loss after unexpected costs accrued during the integration of Safeway took the supermarket chain into the red.
The Bradford-based group this morning (Thursday) reported a loss of £312.9 million for the year to January 29, with costs from the merger of Safeway into its business reaching almost £375m.
Excluding those costs, pre-tax profits weighed in at £61.5m, on total turnover which had stabilised at £12.1bn.
On a positive note, the store conversion process and systems integration has been completed. Morrisons is now one business, operating under one brand, and market share has stabilised following its store disposal programme
Chief executive Sir Ken Morrison said this forms a good platform for future growth: “The results we are presenting today are the outcome of an extremely challenging year for Morrisons. However, through this period of great change, we have built strong foundations for the company’s future as a national retailer. We can look forward with renewed strength and energy now that we are one company with one focus - to be the Best Grocer In Town,” he said.
Morrisons revealed a three-year “optimisation plan”, and Sir Ken added: “The Optimisation Plan, outlined today, lays out the steps we need to take over the next three years to enable the company to apply and adapt where necessary the original Morrisons model to the new, larger business. I am confident that the plan will quickly deliver significant improvements in performance.”
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