English supermarket chain Morrisons becomes the cheapest among the Big four supermarkets in UK. According to recently released Which? report, Bradford-based Morrisons has overtaken Walmart owned Asda to become the cheapest major supermarket chain in the country. Analysts estimates the company to post an improvement in its sales in the annual results this week which is expected to be released this week. Morrisons recently had announced a price cut on almost 1000 products.
Leeds-based supermarket chain Asda, which has been cheapest grocery store since the tracking started in July 2013, loses the position for the first time, adding its worries battling discounter stores. Morrisons is expected to report a 2.1 per cent decline in like-for-like annual sales on Thursday, a marked improvement on the 5.9 per cent fall in 2014.
Morrisons which has been working hard to check the prices and win its reputation as being one of the cheapest on the high street, surprised the market in December sales by reporting a 0.2 per cent rise in like-for-like festive sales. Having said, the company is still under financial pressure with underlying pre-tax profits predicted to fall for the full year to £307m, down from £345m in 2014, as fierce competition in the UK grocery sector continues to bite. Morrisons has also announced store closures in different locations along with axing around 700 jobs at its head office after its new chief David Potts took charge. This created an additional £60m restructuring costs for the supermarket.