Wm Morrison Supermarkets is to reduce the prices of 64 of its products by close to 25% as it steps up its fight for market share against discounters Aldi and Lidl.
This is the fifth time this year that the supermarket is reducing prices, having issued two price cuts already, amounting to over one thousand products, and providing two promotions for its fuel.
Own-brand products such as potatoes, carrots, rice and coffee are all expected to see significant reductions in the latest round of cuts.
“The latest price cuts demonstrate our determination and commitment to make a positive difference to our customers’ pockets,” said David Potts, chief executive at Morrisons.
Food and beverage inflation has only begun decelerating in the last few months but remains around close to 17%.
This is despite the fact the FAO food price index -a global measure of inflation- has fallen for the last ten months.
Morrison’s price cuts are a key part of its battle with discount supermarkets such as Lidl and Aldi.
Aldi became the fourth biggest UK supermarket last year after stealing the spot from Morrisons.
The German company is Britain’s cheapest supermarket while Morrisons was found to be the third most expensive only behind Waitrose and Ocado, research by Which? revealed.
Rivals such as Asda have also begun protecting consumers from hikes, as it told Brits last week it would lock the prices of 600 items until the end of May.
Waitrose, too, is set to cut a quarter of its grocery prices by 20%, costing the company a total of £100mln.
Taking a different approach, Co-op today said it will remove the best before dates on 150 of its fruit and veg items in the hope it will reduce food waste- a move mirroring Tesco’s in 2018.
Morrisons was bought by Clayton, Dubilier & Rice, an American private equity firm, in October 2021 in a deal worth £10bln.
The buyers paid 287p a share, having fought of a consortium headed by Softbank owned Fortress investment which offered 286p per share.
Pressure may be surmounting for the owners, with David Potts set to leave in the coming year; close to £7.5bln in debt and slowing sales in 2022.