Morrisons, the UK’s fourth-largest supermarket, has sacked its chief executive Dalton Philips, after poor Christmas sales.
Philips, who has been chief executive of Morrisons since 2010, will stand down at the time of the supermarket’s next financial results in March.
Morrisons also announced it would close 10 loss-making stores in 2015.
The supermarket said that like-for-like sales, excluding fuel, had dropped by 3.1% in the six weeks to the 4 January, the worst performance of the major supermarket groups.
Traditional supermarkets have been struggling in the face of fierce competition from discounters Aldi and Lidl and high-end grocers such as Marks & Spencer and Waitrose. Morrisons has faced particular challenges, as it was a late convert to online shopping and convenience stores, trends that are changing the way people shop.
Sir Andrew Higginson, due to take over as chairman on 22 January, thanked Philips for his contribution: “In the next chapter of Morrisons development, we need to return the business to growth. The board believes this is best done under new leadership.”
He said Philips had brought “great personal qualities and values” to the business, in the face of “considerable industry turmoil and change”.
“He deserves particular credit for facing into and dealing with the pricing issues that have now become evident, for taking the business into the convenience and online channels, and for the steps he has taken to modernise the company’s operating systems.”
Philips said: “Morrisons is a great company with exceptionally talented people and I have been very proud to have worked with them. Over the last five years, we have made many improvements to the business and given Morrisons strong foundations for the future.”
