Morrisons' boss: We have to invest in online channels

Morrisons chief executive Dalton Philips has cited investment in its online offering and convenience stores after reporting a fall in half-year profits.

Pre-tax profits fell to £344m for the half-year to 4 August, compared to £440m in the same period last year.

Mr Philips said, "We're still one of most profitable retail businesses in the UK - and what we've been doing is been deliberately investing in those new [online] channels."

He admitted Morrisons was late to the online market, "Many of our competitors have been in these channels for some time now... so we're growing at pace but it's costly to get there - we're having to invest but it's the right decision for the long term".