Another poor sales performance has sent the shares of Morrison, the fourth largest supermarket chain in the UK, plummeting as the continue to lose ground against their biggest rivals. In the quarter that ended on the 5th May, their 1.8% drop in underlying sales was an improvement on the 4.1% slump they experienced in the previous quarter, but still caused the shares to drop to by 8.2p down to 288.20, the worst performers on the FTSE 100.
The retailer has said that their performances in London, the advertising campaign starring Ant and Dec and completely avoiding the horse meat scandal has been good for business, but Dalton Philips, the chief executive, is under increasing pressure to bring an end to both falling sales and profits. Once reason many believe is behind them losing ground is that they are the only major supermarket who do not have a home delivery service.
Morrisons, however, have said they are looking to address this and are currently in talks with Ocado in regards to striking a deal to licence the operating practices and technology of the online grocer. They have also said that even if the negotiations collapse, they intend to push ahead with launching internet shopping before end of January 2014.
They have lost millions of sales to rivals such as Sainsburys and Tesco by not having online food shopping, and their convenience store business is also in its infancy, and as these represent the two fastest growing areas in the sector, you can understand why they are performing so poorly.