Hundreds of millions of pounds was wiped off the value of the companies last week after Tesco reported a 2.4pc drop in like-for-like sales in the run-up to Christmas, and Morrisons warned that sales had fallen by 5.6pc, double what the City had expected.
Dalton Philips, Morrisons chief executive, blamed the sales decline on Morrisons’ lack of significant convenience store and online business.
Another top 20 shareholder said: “To do well they need a multi-channel approach and they don’t have one.”
A top 10 shareholder in Tesco, Britain’s biggest retailer, said the company must cut its prices. “They need to restablish themselves as the market leader. It is imperative they are not out of kilter [on price], and they are.”
Clive Black, an analyst at Shore Capital, said new adverts from Morrisons suggested it would be more aggressive on pricing. Asda has committed £1bn to cutting its prices over five years.
Mr Black said: “They are paying the price for collective laziness. They have taken [suppliers] promotions and cheques and thought that would be enough.”
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