Morrison announces price cuts to lift sales

23rd Jun 2014 10:03

Morrisons has announced more price cuts of up to 30% in an effort to boost sales.The UK supermarket will slash prices on more than 130 "everyday items" with an average reduction of 14%. The move comes after the group revealed a permanent price cuts to more than 1,000 items earlier in the year."Cuts will be across a mix of everyday products, predominantly in the grocery and household areas of store," the firm said in a statement. "The announcement comes in the same week as a sharp fall in inflation and the first decrease in food prices for eight years."In March the company posted a pre-tax loss of £176m for 2013/14 after profits of £879m the previous year, as a result of fierce competition from discounters and its slow response to demand for online shopping and convenience stores. Chief executive Dalton Philips decided to forego his £374,000 bonus following the results.Morrisons later reported like-for-like sales decline, excluding fuel, of 7.1% in the 13 weeks to May 4th.RD