THE chairman of Morrisons has said major supermarkets have lost their way on pricing and customers have "voted with their feet".

Andy Higginson was speaking as the Bradford-based company begins to implement a new strategy to reverse a large fall in profits.

Morrisons reported profits down by 52 per cent to £345 million.

That equates to a loss of £792m after taking account of a £1.3 billion write down in the value of its supermarkets.

Almost 800 jobs are under threat, with 23 convenience stores and ten small supermarkets closing.

Speaking to BBC Inside Out Yorkshire and Lincolnshire, Mr Higginson said: "I think the supermarkets collectively have believed they didn’t have to be any cheaper on price - that they could charge a little bit more and that was a collective mistake if you like.

"Morrisons was no different to any of the others in losing its way on that."