Morrisons promises more price cuts as its new CEO 'stops the rot'

The news comes as the Bradford-based grocer ​cheered investors and shoppers with the news of another increase in underlying sales ​as the supermarket continues its turnaround under chief executive David Potts.

“Many millions of people are on a budget,” said Mr Potts.

“We launched ‘Price Crunch’ 13 weeks ago and last week we launched a second round of price cuts. We can expect more ‘Price Crunch’ to come.”

Last week it cut the price of 847 core staples such as sugar, rice, cereals​,​ nappies, bread and teabags.

Morrisons said sales at its Food To Go division shot up by more than 17 per cent thanks to huge demand for wraps, sandwiches, fruit salad and smoothies.

John Ibbotson at retail consultants, Retail Vision, said: “’Morrisons Makes It’ is the name of its current campaign and, based on these results, the grocer might just make it after all.

“Hats off to David Potts. He appears to have stopped the rot. Mr Potts’ strategy of taking on the discounters with the Price Crunch initiative, and establising Morrisons once again as a value retailer, is clearly working.”

Page 15: Morrisons turns the corner