Capex falls from £257m to £139m due to cuts in new store openings
Capital expenditure at Morrisons has dropped by over £100m due to a cut in new store openings and falls in revenue.
The UK’s fourth biggest supermarket chain has cut it’s capex and is planning to close 11 stores in a bid to turnaround the firm’s 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 £117m while total pre-tax profits came in 47% lower at £126m.
According to the supermarket capital expenditure fell to £139m, from £257m for 2014/15, with cuts in all areas, in particular new store openings.
In a statement Morrisons said: “We 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 £400m, as the Fresh Look refits start in the second half.”