Supermarkets to battle on prices
June 28, 2008
Supermarket giants have announced price promotions to outflank discount stores, which have risen in popularity.
Shoppers feeling the pinch have moved to no-frills stores, experts say, with Aldi and Lidl seeing strong growth.
Now Asda is selling 10 staple items such as bread and eggs for 50p over the weekend, and Tesco says it will cut the cost of 3,000 items on Monday.
Rising food prices were the biggest contributing factor to a big lift in consumer inflation in May.
Price cuts
Asda, owned by the US giant Wal-Mart, is advertising a promotion of basics, including sausages and bananas for 50p, from Friday to Sunday.
“Times are getting tough and people are feeling the pinch so we have reduced the price of these 10 staple items over the weekend,” said an Asda spokesman.
“It is going back to the basics, like bread, eggs and butter and fruit and veg as well.”
Meanwhile, Tesco, the UK’s biggest retailer, says it will cut prices on thousands of items in the coming days by up to 50%.
Rival Sainsbury’s has responded with temporary price cuts on summer groceries such as strawberries.
“Whether these are headline-grabbing gimmicks or a longer-term trend, it is just too early to tell. We would urge retailers to keep offering healthier options at affordable prices,” said a spokesman for the National Consumer Council.
“We also hope that concentrating on prices will not distract supermarkets from encouraging shoppers to make greener choices when filling their trolleys.”
Comments
Got something to say?
