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| Morrisons jobs at risk as 11 stores to close | Morrisons jobs at risk as 11 stores to close |
| (about 1 hour later) | |
| Supermarket chain Morrisons is to close 11 stores with the potential loss of 900 jobs as part of plans to transform the company's fortunes. | Supermarket chain Morrisons is to close 11 stores with the potential loss of 900 jobs as part of plans to transform the company's fortunes. |
| It also reported a 47% drop in half yearly profits before tax of £126m. | It also reported a 47% drop in half yearly profits before tax of £126m. |
| New chief executive, David Potts, who started in March, said they regretted the proposed closure of their eleven stores. | New chief executive, David Potts, who started in March, said they regretted the proposed closure of their eleven stores. |
| "This is a difficult decision but one which we cannot see any way through to make those stores viable," he said. | "This is a difficult decision but one which we cannot see any way through to make those stores viable," he said. |
| The closures were mainly smaller-sized supermarkets but Mr Potts would not disclose their locations because managers were in the process of informing staff. | |
| On Wednesday the firm announced it was selling 140 loss-making "M" local convenience stores for about £25m. | |
| The shops will be rebranded as "My Local". The 2,300 staff will be kept on, with an extra 200 jobs to be created by reopening 10 shops that are currently closed. | The shops will be rebranded as "My Local". The 2,300 staff will be kept on, with an extra 200 jobs to be created by reopening 10 shops that are currently closed. |
| This forms part of the company's £1bn cost saving programme, as it now tries to concentrate on its core supermarket business. | |
| 'Old-fashioned' | 'Old-fashioned' |
| "Customers and colleagues are beginning to notice improvements, but the turnaround will take time," the Bradford based group said in its statement. | |
| Like-for-like sales for the period up to August dropped 2.7% compared with the same period last year. | Like-for-like sales for the period up to August dropped 2.7% compared with the same period last year. |
| Total turnover during the period was £8.1bn, falling 5.1% year-on-year. | |
| "Morrisons stores are old-fashioned, not as cutting edge as their rivals but they are dragging themselves into the modern age," said Julie Palmer, retail analyst at Begbies Traynor. | "Morrisons stores are old-fashioned, not as cutting edge as their rivals but they are dragging themselves into the modern age," said Julie Palmer, retail analyst at Begbies Traynor. |
| She said although they are not as slick as their competitors they have an established supply chain and the provenance of their food was good. | She said although they are not as slick as their competitors they have an established supply chain and the provenance of their food was good. |
| Morrisons continues to fight a fierce price war with its big rivals, Tesco, Asda and Sainsbury, who are all being squeezed by discounters Aldi and Lidl. | |
| Despite the economic recovery bringing greater consumer confidence, Morrisons said customers still look for value for money. | |
| Morrisons share price fell by around 5% in the wake of their gloomy figures. |