Morrisons has unveiled another round of price cuts today as it emerged that retail improvement director Richard Manners has exited the business.
The price cuts will lead to 135 everyday products, including peeled plum tomatoes, Flash spray bleach and crinkle cut chips, becoming permanently cheaper. Prices will be slashed by as much as 41%, with an average reduction of 14%. Cuts will include an even split of branded and own-brand products.
Morrisons launched its ‘I’m Cheaper’ price cuts on May 1 reducing the cost of 1,200 products by an average of 17%. According to the Office for National Statistics, food prices across the sector have fallen by 0.6% and Morrisons said it was “an important contributor” to easing the pressure on household budgets.
The price cuts come at a time when embattled Morrisons is losing market share. It’s like-for-likes slumped 7.1% in its first quarter and it plunged to a £176m pre-tax loss in its year to February 2, against pre-tax profits of £879m.
Morrisons chief executive Dalton Philips said: “This is another major price reduction programme. We are making a real difference to the cost of the weekly family shop by reducing prices on products that our customers use regularly. These are permanent price cuts, not promotions, and they won’t be the last.”
Richard Manners leaves Morrisons
Meanwhile, Manners, who was responsible for making Morrisons stores run more efficiently, has departed the business. No details were given about the circumstances of his departure.
Manners, who joined Morrisons two years ago, was previously international development director at electricals giant Dixons. Retail operations director Richard Gray will take over Manners’ responsibilities at the grocer.