Morrisons reported that third-quarter sales were affected by 2.4% because of the cut backs on promotional vouchers.
Like-for-like sales, which excludes fuel, fell by 2.6% in the 13 weeks to 1 November but like-for-like sales online rose by 1% in the third quarter.
Morrisons is the fourth largest supermarket, with Tesco, Sainsbury’s and Asda in front of them but discounted supermarkets such as Aldi and Lidl are creeping up behind them.
As there has been so much competition between the big supermarkets more recently, price wars have been initiated to try to make sure customers do not start shopping elsewhere instead.
The supermarket did report a 52% drop in annual profits to £345 million in March, which was its worst result in eight years so any drop in sales at Morrisons is bad news.
Morrisons is trying to turn it around and in September reported that it would sell 140 “M” local convenience stores in a £25 million deal. This was because many of the convenience stores did not make enough profits and this resulted in the closure of 11 “M” stores.
Christmas is not that far away and on Friday the company will launch its Christmas marketing campaign, which includes using staff to promote their festivities opposed to celebrities Ant and Dec.