Morrisons is expected to announce a slash of up to 60 per cent in dividend payouts over the next 12 months, when the company posts its annual results this week.
Chairman Andy Higginson is to cut the retailer's underlying pre-tax profits by over half, from £785 million to £342 million, as the beleaguered chain makes an effort to fund a turnaround.
As well as slashing profits, Higginson, along with incoming chief executive David Potts, are also expected to halt plans to open 100 M Local convenience stores a year, as reported in the Daily Telegraph.
Potts is expected to continue plans by his predecessor, Dalton Phillips to invest £1 billion into lowering prices in a bid to compete with German discounters Aldi and Lidl.
The reduced dividend payouts is aligned with fellow struggling retailers Tesco and Sainbury's, the former of which has announced final dividend payouts are to be scrapped altogether, while Sainbury's also plans to reduce them.
© 2015 European Supermarket Magazine – your source for the latest retail news.
