The grocer announced a 176m pre-tax profit loss and a 1bn property selloff over the next years in a bid to ameliorate the situation.
Its shares fell over seven per cent to 216p, while Sainsbury’s lost six per cent to 313p and Tesco went down 3.2 per cent. Marks and Spencer lost 1.9 per cent too.
The three supermarkets were the heaviest fallers in the FTSE 100.
Morissons chief executive told the BBC about the restructuring: This isn’t about being a discounter. This is about offering really great value.
“There is a tipping point where the price perception gap has just widened too far between the discounters and the big four and we’re going to address that.”
“We have identified over a billion pounds that we can take out of our business now and that billion pounds is going to be invested back into our proposition to get those lower prices for our customers.”
Morrisons, Britain’s fourth biggest supermarket, launched the price war earlier this month in an effort to fend off discount rivals Aldi and Lidl.