Morrisons has made a raft of price cuts at newly acquired Safeway within days of its £3bn takeover of the chain.
Speaking as the multiple announced its annual results, joint MD Bob Stott confirmed prices had been slashed on 800 items in Safeway stores above 15,000 sq ft.
He added that up to 2,000 further cuts were due to be implemented within a month, adding: “Towards autumn, the Safeway pricing model should be in line with Morrisons, with prices down 5%-6%.”
The Grocer 33 survey this week showed that 13.6% was slashed from the total price of 14 items on the list at Safeway in Weston-super-Mare. Morrisons stamped its EDLP mark by reducing the items at Safeway by a total of £3.62
In other integration moves, Morrisons confirmed it had axed 300 staff from Safeway’s Hayes head office. It also said it was close to a deal on selling a package of Safeway stores, but would not confirm speculation that it involved 22 stores being sold to Waitrose for £322m.
The multiple reported turnover up 15.2% to £4.9bn in the year to February 1, with pre-tax profit up 13.2% to £319.9m in the same period.
Like-for-like sales rose 9.3%. However, it said the integration of Safeway, which suffered a 4% drop in like-for-like sales in the last year, was expected to slow future like-for-like sales growth.
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