Morrisons chief executive Dalton Philips will step down after a 3.1 per cent fall in like-for-like sales saw it deliver the worst Christmas trading results of the top four.
Philips, who has been in the position for five years, will remain until year-end results in March, while the search for his successor has already begun.
Andrew Higginson, chairman-elect, said: 'We need to return the business to growth. The board believes this is best done under new leadership.'
The news comes as the supermarket announced it will shut 10 loss-making stores, as total sales also fell by 1.3 per cent in the six weeks to 4 January.
Morrisons' like-for-like sales decline of 3.1 per cent compares to Tesco, which saw like-for-like sales fall by 0.3 per cent and Sainsbury’s, which saw a decline of 1.7 per cent, over the key festive trading period.
Philips said: “Our like-for-like sales were a step-up on recent quarters and trends in the key operational measures continued to improve. Our three-year cost saving and cash flow targets remain on track.
“Although there is still much to do, we are building the platform to enable us to compete better in an industry that we expect to be highly competitive in the year ahead.”
Higginson thanked Philips for his contribution against a “background of considerable industry turmoil”.
“He deserves particular credit for facing into and dealing with the pricing issues that have now become evident, for taking the business into the convenience and online channels, and for the steps he has taken to modernise the company’s operating systems,” he said.
Philips added: “Morrisons is a great company with exceptionally talented people and I have been very proud to have worked with them.
“Over the last five years, we have made many improvements to the business and given Morrisons strong foundations for the future. I wish every success to the company and all of my colleagues, who have, and continue to work so hard.”
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