Morrisons report losses as a result of price war

Morrisons have been feeling the impact of the latest price war as can be seen by recently released figures.

The big four superstores have been squeezed between the top end sellers and the bottom end sellers for many months now, as Aldi and Lidl steal the customers looking for a cheap deal, and Waitrose offer higher quality to those that can afford it.
Despite lowering prices in a frantic bid to win back customers, the big stores have not seen any major progress as of yet, including Morrisons.
Like for like sales for the store reportedly fell by 7.4% for the last year, not including fuel sales, and the profit generated by the store chain throughout the six months to 3 August fell to £239 million from £344 million the year before.
“Our first-half results reflect the reset of the business we announced in March. Morrisons is now well underway with building the foundations for a better future. The board is confident of the new strategy and Morrisons financial position remains strong,” said Sir Ian Gibson, chairman of Morrisons.
The store has taken on a three year investment programme aiming to cut prices and open discount stores across the country, just as other supermarkets have.
Hopefully for the big four superstores, the price war will eventually pay off for them, but as of yet, little advances seem to have been made.