Morrisons has reported its interim results today, with profits falling 51% to £181m (2013/14 £371m). Turnover has also decreased to £8.5bn (2013/2014: £8.9bn).
That’s despite a marketing blitz to publicise its radical price-cutting on products across its range.
However, chief executive, Dalton Philips explained that it was too early to see whether his changes were making an impact:
“We are six months into the three-year plan that we set out in March and, although it is early days, I am encouraged by the progress we have made.
“There is an enormous amount of change and modernisation flowing through our core business, much of it enabled by new systems. Price investment, in-store improvements, and better products were all key components of the work undertaken in the first half, and the Morrisons card launches soon. Our new growth channels – online and convenience – are progressing well, and our cost-savings and cash flow plans are both on track to achieve our ambitious three-year targets. “
“Although it is too early to see the benefits of the three-year plan in the sales line, Morrisons is getting back on the front foot, and implementing change and innovation at real pace throughout the business.”
A Morrisons loyalty card has been trailed and is set to come into circulation shortly and Philips hopes that this will also increase communication and interaction with customers.