Morrisons has announced a pre-tax loss of £629m, extending its search for profit, even as sales saw a 2.8 per cent increase. The supermarket's net debt also rose from £7.1bn to £7.5bn in the year to last October.
The company's chief executive, Rami Batiéh, who took charge in November 2023, has aimed to "reinvigorate" the supermarket through price cuts and loyalty platform engagement. However, these efforts have been challenged by factors including Labour tax hikes, fragile consumer confidence, and a 2024 ransomware attack on its tech provider that caused food shortages.
Morrisons also reduced its average monthly workforce by nearly 5,000 people over the past year, a five per cent year-on-year decline. This reduction reflects the closure of its newspaper home delivery service, restructuring of its retail people team, and downsizing of the Rathbones bakery business.
The supermarket is considering selling off another £1bn worth of property to manage its debt, having already offloaded parts of its portfolio. Its lease liabilities, representing future rent, increased to £2bn in the last year, up from £1.8bn the year before and £1.2bn in 2022.