Read MoreTesco: Might more investors check out?
Tesco slashed profit expectations for the year and cut its dividend, as it confirmed former Unilever executive David Lewis, would take up his role as CEO a month early at the start of September.
"What's missing in the Morrisons story right now is a consistent, sustainable market strategy," Brian Roberts, Retail Insights Director at Kantar Retail told CNBC. "Morrisons really is missing a trick here. "
Shares in Morrisons traded over 4 percent higher shortly after market open, as traders welcomed the results as slightly better than expected. Year to date shares are down almost 30 percent. Rival retailers Tesco and Sainsbury's gained around 1 percent.
Meanwhile online grocer Ocado jumped over 6 percent in early trade after reporting that retail sales rose in its third quarter. The average order size fell, however. Ocado struck a deal with Morrisons to provide its online grocery operation which was launched in January.
—By CNBC's Jenny Cosgrave: Follow her on Twitter @jenny_cosgrave