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Future of British Business

Morrisons Profit Drops as Discounters Gain Shoppers

  • British supermarket chain is following cost savings plan
  • Morrisons said earnings will rise this year, net debt to fall
Customers browse a refrigerated aisle of food in a Morrisons supermarket in Saint Ives, UK.

Customers browse a refrigerated aisle of food in a Morrisons supermarket in Saint Ives, UK.

Photographer: Chris Ratcliffe/Bloomberg
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Morrisons profit fell as consumers battling higher living costs curbed their spending at the UK supermarket chain in favor of discount grocers.

Adjusted earnings dropped 15% in the year to Oct. 30, the grocer said Thursday. Morrisons noted that high food-price inflation, rising interest rates and the cost-of-living crisis are all creating a “sense of uncertainty and pessimism” in consumers.