Morrisons has admitted that its performance fell short of expectations after reporting a 7% drop in full-year profits to £879 million.
The supermarket, which generated sales of £18.1 billion in the year, said it had not done enough to communicate its promotions and suffered because it still lacked a meaningful presence in the two fastest growing sectors of the market.
The UK's fourth-biggest grocer, which employs 129,000 staff at 498 stores, said like-for-like sales dropped 2.1% in the year, while the average of 11.4 million customers in its stores each week was down on the prior year.
Morrisons has just announced another set of results with another drop in sales. They have fallen behind competitors without convenience stores like Tesco Express of Sainsburys Local. And they have not moved into online shopping in a significant way.
This morning though they have revealed what many expected - they are in talks with Ocado, who have problems of their own, to use their operations. And they have recently bought some empty high street sites from Jessops and HMV to develop more 'M-Locals'.
Will this be enough to turn things around? It is customers around the country who will decide. We will be talking to the boss this morning.