Britain’s Morrisons picks out over 500 products for price cuts -Breaking
LONDON, (Reuters) – In the face of rising inflation in Britain’s food retail industry Morrisons announced Monday that it would reduce prices for over 500 items.
Britain’s fourth largest supermarket, Sainsbury’s (OTC:), and Asda are the top two. They claim that lower prices account for 6% of their total volume sales.
Morrisons, owned since October by U.S. private equity firm Clayton, Dubilier & Rice, has been the worst performer of Britain’s so-called “big four” grocers in recent months, according to industry data.
According to the report, price cuts have been made on essential products such as rice, eggs, biscuits, cakes, muffins, and cereals. The average savings was 13%, according to the report.
The group has also introduced new “multi save” promotions, such as two boxes of cereal for 1.80 pounds ($2.30) and a “Compare & Save” campaign to help shoppers identify savings that can be made by swapping branded items for Morrisons’ own brand products.
The greatest squeeze on household income in the UK since the 1950s is due to the soaring prices
According to industry data, grocery prices inflation was 5.2% for the 4 weeks ending March 20, which is the highest since April 2012 (data published by the ICI).
Supermarkets often try to lower the price of “known value” items, which are goods that shoppers intuitively know about. However, they push up prices for other products.
The overall rate of inflation in Britain reached a record 7% in March, a new 30-year high. It is forecast to reach 9% by the end of this year.
On Friday, a UK survey showed that consumer confidence has fallen to its lowest level in nearly 50 year since the beginning of records.
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