The deal is the latest transaction in the luxury department store sector.
"In the discount department store sector, for example, Wal-Mart and Target Stores had double-digit increases, but Kmart was flat".
Philips suggested Morrisons was struggling because it entered the fast-growing online grocery market and convenience store sector later than its rivals.
Within the department store sector, for example, some stores recorded a stellar month -- notably Neiman Marcus, the luxury goods seller, whose sales for the month jumped 19percentt over last September, and Kohl's, whose sales increased 9.8percentt above the previous year.
Mr Potts said Morrisons would not rule out a move into the convenience store sector in the future, but added: "Convenience is a large and growing channel in UK food retailing.
It has been criticised for being slow in moving into the convenience store sector and setting up an online operation.
Mr Philips was under pressure for Morrisons' poor trading performance, in particular for delays in moving into the convenience store sector and setting up an online operation.
Morrisons has been criticised for being slow in moving into the convenience store sector, as well as in setting up an online operation.
Meanwhile, Kohl's, which is bucking the trend by growing same-store sales and reducing inventory at the same time, is showing the best ROI in the department store sector.
The supermarket has already announced £1bn in price cuts over three years, launched an online operation, expanded its presence in the convenience store sector and moved to update antiquated IT systems.
