Morrisons cuts prices of own-brand products to help customers after £25 million investment

The supermarket has invested £25 million into the price cuts
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Morrisons is cutting prices across a range of its own-brand products as it joins a string of supermarkets battling to retain customers as living costs soar.

The retailer, which was recently pushed out of the “big four” UK grocers by discount chain Aldi, said it has invested £25 million into the price cuts.

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The move will see some 64 kitchen cupboard essentials, breakfast items and fresh products be reduced by an average of almost a fifth, Morrisons said.

Price reductions will see a 200g bag of full roast coffee granules drop from £3.99 to £2.25, little gem lettuce has been cut from 99p to 85p, while a four-pack of toilet paper now costs £1.99 down from £2.55.

Morrisons has also introduced promotional deals to help shoppers savemoney, including two for £2 on selected crisps and two for £1.80 on cereals. The offers come into effect this week in all of Morrisons’ 498 supermarkets and online.

Morrisons is cutting prices across a range of its own-brand products (Photo: PA)Morrisons is cutting prices across a range of its own-brand products (Photo: PA)
Morrisons is cutting prices across a range of its own-brand products (Photo: PA)

The supermarket said it has invested £148 million over the last six months into cutting prices of popular and essential items, and reduced prices of around 1,000 products in January alone.

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David Potts, Morrison’s chief executive, 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.”

Morrisons is among the major supermarkets in the UK competing to slash prices and retain shoppers who are looking for better value amid the cost of living crisis.

Last week, upmarket grocer Waitrose announced it was investing £100 million in cutting prices on hundreds of its own-brand products, while in December, Sainsbury’s revealed it was pumping a further £50 million into its latest price-cutting push to keep customers loyal, taking its total investment to £550 million over two years.

Waitrose executive director James Bailey said: “We understand that getting value for money has never been more important for everyone. So we’re cutting the prices of hundreds of everyday favourites from carrots to butter, and tea and coffee, with many cut by 20% or more.”

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The price of basic groceries such as butter, milk and cheese went up 30% year-on-year at some supermarkets in December, according to tracking by consumer group Which?. Overall food and drink inflation reached 15% in December across the eight major supermarkets with butters and spreads rising by an “astonishing” 29.4%. Milk was 26.3% more expensive than a year before, while cheese, bakery items, water, and savoury pies, pastries and quiches also saw higher-than-average price increases.

It comes as grocery price inflation hit a record 16.7% in January - the highest figure since records began in 2008, according to analysts Kantar. It said the price rises mean households face an extra £788 on their annual shopping bills on average, assuming that they do not change their shopping behaviour.

Kantar added that competition in the British supermarket sector “is as intense as it’s ever been” as retailers race to bring down prices on their own-brand items. It has had a notable impact on shopping behaviour with supermarkets’ own-label ranges growing by 9.3% in January, while branded alternatives were up by just 1% in the month.

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