LONDON (REUTERS) - A sharp cut to the profit outlook of struggling retailer Wm Morrison sparked a major sell off in the shares of British retailers on Thursday, wiping billions of pounds off the value of the sector.

Shares in Morrisons fell 10 per cent, while rival Sainsbury's fell 6.7 per cent, market leader Tesco slumped 4.1 per cent and Marks & Spencer lost 1.7 per cent.