Supermarket group WM Morrison has warned full-year profits will be at the bottom of market expectations, after like-for-like sales dropped 5.6% over the festive period.
In an unscheduled trading update, chief executive Dalton Philips admitted Morrisons has suffered a "disappointing" Christmas and that the UK grocery market had been "very tough".
The decline in like-for-like sales was double what the City had been expecting and renews the pressure on Mr Philips, who has blamed Morrisons’ under performance on its lack of a significant online and convenience store business.
Mr Philips said: "In a very tough market our sales performance over Christmas was disappointing.
"However we are firmly focused on driving our core business and accelerating our penetration of the fast growing channels.
"Our convenience business is building towards an operation of scale and the first food deliveries of Morrisons.com will be made tomorrow, reaching half of UK households by the end of the year."
