Launching what was billed as “one of its biggest price crunches”, the supermarket revealed plans yesterday (August 1) to slash an average of 18% from the price of 1,045 every day products – including hundreds of core grocery and dairy items.
But the prices cuts would not result in reduced payments to Morrisons’ food and drink suppliers. “This is largely our own planned investment,” a spokeswoman for the retailer told FoodManufacture.co.uk.
18% for bakery, cakes and desserts
Among the price cuts unveiled by the retailer were an average of 18% for bakery, cakes and desserts, 16% for frozen food and the same for beers, wines and spirits. See more information in the box below.
“Morrisons is unique as a food-maker and shopkeeper, and unlike the rest of the industry manufactures food, both in our own food processing plants and our 500 stores.”
- Andy Atkinson
Morrisons’ customer and marketing director Andy Atkinson claimed the move was partially to reassure consumers, following the UK’s historic vote to quit the EU. “We are constantly listening to our customers and know they are concerned about whether food prices will go up following the Brexit vote, especially on imports,” he said.
He also highlighted the Bradford-based retailer’s vertically integrated supply chain, hailed by some analysts such as Shore Capital as a key point of difference between the other big four supermarkets: Tesco, Asda and Sainsbury.
‘Morrisons is unique as a food-maker’
“Morrisons is unique as a food-maker and shopkeeper, and unlike the rest of the industry manufactures food, both in our own food processing plants and our 500 stores,” said Atkinson.
“We are British farming’s biggest supermarket customer, which means we can better control our prices, and this latest round of crunches demonstrates our commitment to offering the best possible value to our customers this summer.”
Shore Capital analysts Clive Black and Darren Shirley said: “Morrisons’ move is another step in the process of the introduction its own price file whilst closing the gap against the limited assortment discounters.”
Meanwhile, Morrisons’ ceo David Potts is one of six candidates for the Food Manufacture Group Personality of the Year Award. So who will you vote for?
- Bakery, cakes and desserts: 18%
- Beers, wines, spirits and tobacco: 16%
- Essential grocery: 17%
- Dairy and provisions: 18%
- Frozen food: 16%
- Meat, poultry and oven fresh: 12%
- Fruit, vegetables and salad: 17%
- Seafood: 16%