Morrisons chairman Sir Ian Gibson has revealed he will stand down next year.

Gibson will not seek re-election at next year’s annual general meeting.

His decision comes at a difficult time for the grocer, which recorded a 7.1% fall in like-for-likes in its first quarter to May 4. The retailer is also thought be on the verge of a restrurcture that could result in up to 2,000 redundancies across its stores.

Gibson said: “This term will take me into my eighth year on Morrisons’ board, and this announcement gives the board time to conduct an orderly search for a new chairman and ensure a smooth transition.”

Morrisons said: “The board welcomes Sir Ian’s continuing support as it implements its strategy.”