Morrisons has reported a 47% plunge in its half-yearly profits after a 2.7% fall in like-for-like sales.
The supermarket posted profits of £126 million for the first six months of its financial year.
Morrisons also announced plans to close 11 stores, putting around 900 jobs at risk. Chief executive David Potts, who started in March, said: "This is a difficult decision but one which we cannot see any way through to make those stores viable."
Mainly smaller-sized stores would be closed, but Mr Potts did not reveal their locations because managers were still in the process of informing staff.
"Customers and colleagues are beginning to notice improvements, but the turnaround will take time," the company said in its statement.
The announcements come a day after Morrisons agreed to sell its convenience store business for £25m. Around 140 'M Local' stores will be rebranded 'My Local' by its new owners.