British supermarket chain Morrisons experienced a 6.3 per cent slump in sales in the three months to 2 November compared to the same period a year ago.
Despite the poor sales figures, the chain has claimed its three-year turnaround plan is working, after its sales decline slowed from the 7.1 per cent and 7.6 per cent in the previous two quarters.
Morrisons said competition in the British supermarket sector remained "intense" and it would take time for its pricing initiatives to help sales recover. It pointed to the popularity of its 'Match and More' loyalty card for the sales slide going in the right direction.
The group's total sales, excluding fuel, were down 3.6 per cent. Morrisons has embarked on a three-year restructuring plan to save £1bn, and in June announced 2600 job cuts.
Commenting on the chain's sales slump, Bernstein Research said: "While management claimed they were 'making good progress on all components of the plan', we are unsure exactly how we are supposed to judge progress on this plan and what the core components are (is it now simply the "Match & More" initiative?).
"Christmas is looking like an aggressive period, with Sainsbury's announcing its new strategy next week and Aldi and Waitrose going after Christmas in a bigger way than before."
The news comes after ESM last month reported that the bitter price war between the UK's largest supermarkets will do little to entice shoppers back from the German discount retailer.
