The Telegraph

The supermarket group Morrisons has pledged to aggressively cut prices in its stores after slumping to a loss in the face of competition from discounters Aldi and Lidl.

The Bradford-based retailer reported a pre-tax loss of £176m for the year to February 2 after writing down the value of its property, IT, and baby equipment retailer Kiddicare.

This was on the back of a 2.8pc fall in like-for-likes sales over the last 12 months as Morrisons lost shoppers to discounters Aldi and Lidl.

In response to the fall in sales, Morrisons will invest £1bn into cutting prices and improving its products over the next three years, including £300m in 2014.

However, the investment in pricing combined with the company’s declining market share led Morrisons to warn that profits this year will fall dramatically.

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