Morrisons funding price cuts by profit reductions

Morrisons chief executive Dalton Philips said chain will be reducing its profits as it takes on budg…

Morrisons chief executive Dalton Philips said chain will be reducing its profits as it takes on budget giants such as Aldi and Lidly by pledging to invest £1bn in prices.

The supermarket boss visited the chain’s recently developed store in Newport Road in Cardiff ahead of addressing members of the Cardiff Business Club tonight at the St David’s Hotel & Spa.

The 45-year-old said: “There’s big structural changes going on in the market.

“People are shopping in a very different way than they did previously. We have seen strong growth in the discounters in the same way that we saw the growth of Ryanair, Easyjet or Primark.

“We don’t want to cut corners, we can offer so much more than the discounters in terms of the depth of our range.

“We want to be extremely competitive with prices.”