Morrisons like-for-likes slipped 0.9% in its half year to July 29.
Pre-tax profit dipped 2% at £440m against turnover which increased 2.3% to £8.9bn. Underlying profit edged up 1% to £445m.
Morrisons chief executive Dalton Philips said: “Although the sustained pressure on consumer spending was reflected in our like-for-like sales performance, we have made further good progress against our strategic objectives - the building blocks which are the foundations of the future success of our business.”
The grocer is set to launch online in the second half with wine becoming its first category sold via the web with the Morrisons Cellar wine range.
It is also expanding its extended fresh foods offer Fresh Format to over 100 stores this year. It currently is in 45 stores. Morrisons is readying itself to launch its convenience format M Local in London following the acquisition of a new distribution and food preparation centre in Feltham, west London.
The retailer also revealed it is to launch an own brand clothing range named Nutmeg which will be headquartered in Leicester.
Morrisons non-executive chairman Sir Ian Gibson said: “With ongoing commodity inflation continuing to weigh on already fragile consumer confidence and market conditions becoming ever more challenging, we have had to work even harder for our customers during the first half.”