Supermarket price war to get dirty

7 January 2015

trolley Following yesterday's news about Asda's milk price reduction, the big four supermarkets are drawing lines in the sand and prepping for an all out price war.

Sainsbury's have started alongside Asda, with a whole host of price cuts, with Tesco limbering up to join in for a bloody battle for their customers.

Asda reckon they'll be committing £300 million in Q1 of 2015, while Sainsers have said they'll lower prices on 1000 of their products with an investment of £150 million.

Tesco's trading update will arrive on Thursday, which will make for interesting reading given their 2014, and their chief exec Dave Lewis is poised to announce a round of price cuts.

The price cuts by Asda and Sainsbury’s are part of investments already announced by the companies. Asda started the price war in the industry by announcing a £1bn, five-year price drive unveiled in late 2013, and the £300m is part of this.

Asda have said the latest wave of price cuts represented its “biggest ever single investment in lowering prices” and cover 2,500 items.

Although don't get your hopes up for this to be a lasting thing, as some of the offers will only be - like boredom - temporary.

Barry Williams, chief merchandising officer for food at Asda said: “We’re going further than ever before, rolling back those everyday, can’t live without items at a bigger percentage than we’ve ever been able to do previously.”

Mike Coupe, chief executive of Sainsbury’s, said: ‘We are investing £150m per year for the next three years in some of our customers’ most popular purchases, with a total of 1,000 prices cut since we announced this investment in November. This will come as welcome news to customers who might be feeling the pinch after Christmas.”

It's all a bit of an effort on the big four's part to drive people back through their doors after their dallying with the likes of Lidl and Aldi.

2 comments

  • Alexis V.
    It's very easy. They just need to price match the competition at the till and immediately and automatically knock the extra off the bill. They think we're morons. Vouchers off the next shop, points on a card, minimum £10 spend, branded good only etc. etc. All falsely claimed as 'price matching'. Morrisons for example, claim to price match. Everybody sells milk at £1, but Morrisons are £1.29. Just try giving them a quid at the till. Instead you've got to jump through a bunch of hoops with a card just to get some 'points'. They're all bastards.
  • Jack S.
    About time the reduced fuel costs and thus transportation costs filtered through to the supermarket prices. Strange they've not mentioned that though isnt it. not.

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