Co-op slash costs in supermarket price war
THE latest salvo in the battle between the supermarkets was fired yesterday when Co-operative Food unveiled another round of reductions in its £100million price cuts campaign.
It has lowered prices on a range of products from ketchup to washing-up liquid in the latest phase of its drive to cut the cost of a third of products on its shelves.
The Co-op said it had seen a 6 per cent rise in sales of categories where it had already reduced prices since the campaign was launched in April.
Its latest move came on the same day that new Tesco chief executive Dave Lewis began work in his new job after his starting date was brought forward a month.
The former Unilever executive has been drafted in to revive sales and rebuild the market share of Britain’s biggest retailer.
Analysts think that one of his first decisions will be to unveil a new round of price cuts as competition among the supermarkets intensifies as the likes of Lidl and Aldi challenge the bigger groups.
We are introducing permanent price reductions on hundreds of key product lines as we respond to the needs of local people
Lewis has been given a warchest of £1.2billion that could be used after the company last Friday announced it was cutting its dividend payment to shareholders and reduced its investment in store revamps and computer systems.
Co-op Food declined to comment on any plans Tesco may have, but is likely to give further details about its own strategy when parent company Co-operative Group announces results on Thursday.
As part of its “fair and square prices” campaign, the Co-op has pledged permanent price reductions of 5 per cent across a wide range of essential products in its 2,800 shops.
Customer director Andrew Mann said: “We are introducing permanent price reductions on hundreds of key product lines as we respond to the needs of local people.
“Providing them with high quality food, whether that’s pre-packed or fresh food, if it’s for a snack or the family evening meal, we can meet the requirements of their busy lives through a truly convenient shopping experience.
“This next step in our ‘Fair and Square prices’ campaign re-enforces this commitment.”
Mann said the 40p cut in the price of own-brand ketchup to £1.39 “completes the picture for lovers of the bacon butty” after it previously cut prices of bread and bacon.
