Morrisons could be forced to issue a profits warning early next year if lagging trade does not pick up, City analysts have warned.
Shore Capital analyst Clive Black said: “Morrisons is under real pressure and it’s fair to say that there’s a reasonable amount of heat at head office. The momentum is genuinely worrying, it’s been slipping back for a year now. If present trading momentum persists into the new year, there will have to be downgrades, and a profits warning would be inevitable.”
Morrisons could be forced to issue a profits warning early next year if lagging trade does not pick up. is.gd/GirHpK
— Neil Saunders (@NeilRetail) October 28, 2012
According to retail analysts Nielsen, Morrisons’ market share was down 0.5 per cent for the four weeks to the middle of October. Rivals Sainsbury’s, Tesco and Asda all recorded gains. Morrisons is further threatened by the emergence of discounters Aldi and Lidl.
Rahul Sharma, managing director
of investment firm Neev Capital and retail expert, said: “Morrisons is at the receiving end of Tesco, Asda and the discounters, who are outstripping it in terms of growth and promotions. Morrisons offers nothing unique. Numbers have been slipping for a long time, making it susceptible to a profits warning.”