Morrisons suffer another blow

The price war has affected all of the big four supermarkets, but while some of the others are beginning to find their feet again, Morrisons have reported their profits are the lowest they have been in eight years.
The supermarket chain reported pre-tax profits of £345 million, down 52 per cent.
Dalton Philips, the Chief Executive of Morrisons, announced that he would be leaving the firm back in January, and his replacement, David Potts, is due to start on 16 March.
Hopefully he will be able to make changes to salvage the profits of the business.
The shares in the business suffered a 2% drop following this profit report.
Chairman Andrew Higginson admitted that “last year’s trading environment was tough and [they] don’t expect any change this year,” indicating that the climb back to success for Morrisons will be a long-term one, if it happens at all.
In order to give the new chief a bit of financial space to manoeuvre, the dividends for this year will be slashed to 5p per share for the 2015-16 period. This is a big drop from the 13.7p payout in 2014-15.
One of the suggested theories as to why things have gone so badly for Morrisons includes the way that they have not moved into the convenience stores sector as quickly as the other big stores, Tesco and Sainsburys, did.
Conversely, Morrisons have announced the closure of 23 convenience stores in a bid to draw back and consolidate their business before “pressing the accelerator” on growth.
The closing of these stores will result in the loss of 380 jobs, it is reported.