Fall in festive sales
A fall in total sales – excluding fuel – by 1.3% for Morrisons in the six weeks to January 4 2015 was the final nail in the coffin for Philips, with his departure revealed along with the results.
The retailer also revealed it was forced to close 10 unprofitable stores.
Like-for-like sales excluding fuel were down by 3.1% over the festive period.
Planet Retail described the results as “underwhelming”.
“Representing one of the worst declines among the so-called UK big four over Christmas, Morrisons’ results are being impacted by the double whammy of falling food volumes alongside stagnant food price inflation,” said retail analyst David Gray.
Morrisons’ deputy chairman and chairman elect, Andrew Higginson, said a new leader was needed in order to return the business to growth.
He did, however, praise Philips for taking the firm into the convenience and online channels during his tenure.