13th Jan 2015 07:18
LONDON (Alliance News) - Wm Morrison Supermarkets PLC Tuesday announced that Chief Executive Dalton Philips will step down after five years at the helm, while at the same time the supermarket chain revealed a 3.1% fall in like-for-like sales excluding fuel over the Christmas period.
Morrisons said it has now begun the search for a new CEO, stating that Philips has led the business through a period of "significant change" for both the company and the industry.
"In the next chapter of Morrisons development, we need to return the business to growth. The Board believes this is best done under new leadership," said Chairman Elect Andrew Higginson.
"He deserves particular credit for facing into and dealing with the pricing issues that have now become evident, for taking the business into the convenience and online channels, and for the steps he has taken to modernise the company's operating systems," Higginson added.
Philips will continue as CEO until the company's year-end results.
Morrisons Chairman Ian Gibson will retire on January 22, with Higginson succeeding him as chairman after that date.
Morrisons also gave a trading update for the six-weeks to January 4, saying that like-for-like sales improved on recent quarters.
The UK grocer said like-for-like sales excluding fuel were down 3.1%, and down 5.2% including fuel.
Total sales for the period were down 1.3% excluding fuel, and 3.6% including.
"Our like-for-like sales were a step-up on recent quarters and trends in the key operational measures continued to improve. Our three-year cost saving and cash flow targets remain on track. Although there is still much to do, we are building the platform to enable us to compete better in an industry that we expect to be highly competitive in the year ahead," Philips said in the company's statement.
Morrisons also narrowed its profit guidance for the full year, stating that it now expects to deliver an underlying pretax profit for the financial year to beginning of February of between GBP335 million and GBP365 million. It said this figure is after GBP65 million of new business development costs and GBP70 million of one-off costs.
The latest grocery figures out from Kantar Worldpanel later Tuesday morning will determine reveal how Morrisons fared against against of the UK supermarket rivals for the 12 weeks to January 4.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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