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Morrisons vows to take on Aldi and Lidl after losses of £176m

The supermarket chain Morrisons has vowed to aggressively cut its prices to take on Aldi and Lidl after it recorded an annual loss of £176 million amid falling sales and one-off costs of £903 million.

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Morrisons to cut prices to take on Aldi and Lidl

Morrisons Chief Executive Dalton Philips said it was investing £1 billion over the next three years in an aggressive price-cutting strategy to take on discounters such as Aldi and Lidl, saying:

We are going to lower our prices on a permanent basis.

The biggest challenge that we face is that there has been a fundamental change in how consumers view discounters.

They are no longer going to them out of necessity. The perception has changed and there is a new price norm.

The rules have changed and we must change too. It is absolutely critical that we begin winning again in our core supermarkets. To do that we must compete on price.

Mr Philips said that after 2015/16 no new supermarkets would be built other than in exceptional circumstances though its network of convenience stores would continue to be developed.

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