Morrisons CEO Dalton Philips has urged the government to cut fuel duty to help struggling customers.
He told ITV News that, "I think that's what hits the customers most at the moment, there are a number of other areas, but if they could work on lower fuel duty that would make a big difference to consumers."
Morrisons boss Dalton Philips has called on the government to cut fuel duty and says that it is the biggest thing they could do to help customers having difficult times.
He also tells us that customers will be able to shop online by end of the year, but Ocado tie up just one option, although he is cryptic about other possibilities if the Ocado deal does not come off - but optimistic on 100 new convenience stores.
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 said it plans to launch an online food offer by January 2014 to better compete with rivals as it posted its first fall in full-year profits for six years.
Unlike the other grocers that make up Britain's so called "big four" - market leader Tesco, Wal-Mart's Asda and J Sainsbury - Morrisons currently does not have a website for the home delivery of food.
Morrisons is in talks with British online grocer Ocado which could lead to some form of partnership deal, but has said its online offering would not be dependant on the Ocada talks.
Today's announcement that we are launching an online food offer in 2014 is another important step in Morrisons strategy of being 'Different and Better than Ever'. We may be a late entrant to the online food market but we have learnt from our involvement with Kiddicare and Fresh Direct. We have long been a leader in fresh food and our craft skills and vertical integration really set us apart 3 from the competition. Ensuring that these points of difference translate into our online food offer will be a priority.
Although this has been a difficult year in trading terms for Morrisons as we struggled to grow sales in a tough consumer environment, we have delivered a 7% improvement in underlying earnings per share and announced a 10% dividend increase, in line with our previously stated policy. It has also been a period of significant strategic progress as we continue to lay the foundations for future growth.
The sustained pressure on consumer spending was reflected in our like-for-like sales performance, which was not as good as it should have been. We have implemented a range of measures to address this and are making good progress in improving our promotional effectiveness and in communicating our points of difference.
Recent events have underlined why it's so important that we tell our customers how and why we're different and what our vertical integration really means for them. Food quality, provenance and the issue of trust are at the forefront of consumers' minds and these are all areas where Morrisons has something genuinely different to offer.
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.