Morrisons, one of the largest supermarkets in the UK, is about to lower the prices of up to 200 everyday items that are deemed essential by as much as a third.
The decision to make the reduction is the supermarket chain’s attempt to counter the increasing market share of Aldi and Lidl, supermarkets that both originated in Germany. Morrisons hopes to prevent any further loss of shoppers with the price reduction.
Last year was particularly difficult for the supermarket as they saw their profits cut by half, which was the lowest for the past eight years. Their response was to commit up to a £1bn towards lowering prices for the next three years.
Similar measures were made by Asda, Sainsbury’s, and Tesco, three of the UK’s other leading supermarket chains. Asda and Tesco committed £300m and £150m to their efforts, respectively. Tesco, on the other hand, chose to lower the prices of 2,500 items.
Kantar’s research has found that the prices of everyday items now cost around 2.1 % less than it did last year. This is after every major retailer decided to slash the prices of those goods.
Every major grocery player in the country has had to face the record high industry price deflation that was also commodity-driven. However, Morrisons has something of a silver lining when last week’s industry data revealed that the company found itself back to sales growth level for the first time in almost two years or since December 2013.
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