WM Morrison supermarket group will sell 120 stores that it bought as part of the Safeway deal. The sale of the stores is estimated to bring in £250 million, at the lower end of the initial estimates that reached £600.
Sainsbury’s newly-appointed chief executive, Justin King, is considering cutting jobs at the London head office, as well as some store closures, in an effort to turn around the company’s poor performance.
The latest CBI survey reported a drop in retail sales for July following two months of strong growth. Retailers blamed the end of Euro 2004 promotions and interest rate rises for the slowdown during July.