The recent share price underperformance had anticipated a weak update and indeed, Morrisons’ update was disappointing. We expect underperformance to continue into next year as changes to its marketing & promotional strategy will take time for consumers to become aware of.
CLIVE BLACK | SHORE CAPITAL
The recent market share data for the UK supermarkets has contained one clear and demonstrable alarm bell, to our minds at least, and that is the slowing sales momentum and widening under performance of Morrisons... Following this very disappointing update [we] reiterate our ‘sell’ stance.
JAMES GRZINIC | DEUTSCHE BANK
Morrisons’ third quarter update was as challenged as feared, with like-for-likes declining 2.1 per cent.... Our unchanged estimates presume that this, and softer comparables, translate into improving trading momentum from the fourth quarter.