Capex falls from 拢257m to 拢139m due to cuts in new store openings
Capital expenditure at Morrisons has dropped by over 拢100m due to a cut in new store openings and falls in revenue.
The UK鈥檚 fourth biggest supermarket chain has cut it鈥檚 capex and is planning to close 11 stores in a bid to turnaround the firm鈥檚 fortunes. Like-for-like sales at the chain have fallen 2.7% in the six months to August 2. The supermarket also announced it is to sell off its convenience store operation.
Underlying pre-tax profits fell 35% to 拢117m while total pre-tax profits came in 47% lower at 拢126m.
According to the supermarket capital expenditure fell to 拢139m, from 拢257m for 2014/15, with cuts in all areas, in particular new store openings.
In a statement Morrisons said: 鈥淲e have reviewed our capital expenditure plans in detail. All components fell during the first half - new stores, non-core channels and IT. We still expect full year capital expenditure to be around 拢400m, as the Fresh Look refits start in the second half.鈥�
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