More Price Cuts At Morrisons After Study Confirms It Made Big Hikes Over The Last Year
Morrisons is cutting the price of its own-label range again after a series of reductions last month as it battles to win back shoppers from its rivals and halt the decline in its market share.
After rolling out over 1,000 cuts in January, the supermarket said today it was investing £25m in lowering the prices on a further 64 items, including fresh produce such as potatoes and carrots, and essentials such as rice and coffee. Prices are being reduced by almost a fifth on average.
David Potts, Chief Executive of Morrisons, said: “We are just seven weeks into 2023 and already this is our fifth significant price activity of the year. These latest price cuts follow hard on the heels of two notable in store price cuts involving well over 1,000 products, and two strong fuel promotions, demonstrating our determination and commitment to make a positive difference to our customers’ pockets.”
The move marks the latest escalation of the price war between supermarkets as cost of living pressures force consumers to shop around for the best deals.
Last year, Morrisons lost its spot as the UK’s fourth biggest supermarket after it was overtaken by Aldi. Analysts at the time suggested that Morrisons had become uncompetitive after hiking prices amid pressures on its finances caused by the debt-fuelled takeover by CD&R.
New data shows that Morrisons raised its prices by almost a fifth in the past year – more than any other major grocer.
Quoting figures from The Grocer magazine, the This is Money website highlighted that a basket of everyday goods from Morrisons cost £75 this month, an 18% increase from a year earlier.
The same basket of 33 products cost £70 at Sainsbury’s, having increased 9% from a year earlier. Tesco’s basket cost £74, a 13% increase, while Asda was the cheapest at £67.15, up 11%
Last week, credit agency Moody’s downgraded Morrisons’ rating after the outlook on the supermarket’s ability to repay debts in excess of £7bn had shifted to negative from stable. Analysts also raised concerns about “operating underperformance”, saying Morrisons was suffering from lower sales combined with higher costs.
