Morrisons/ASDA - comment

The incremental impact of the Morrisons price cuts to creditors is small, but it underlines the low consumer confidence and the ongoing drag from ASDA’s plan to reposition itself as the best value amongst the “Big 4”. Cost-cutting at Morrisons continues, but headwinds from higher tax charges, increases in the minimum wage and other costs mean that the benefits are not flowing into better margins.