Morrisons to match prices with Aldi and Lidl - UPDATE
Morrison Supermarkets has unveiled plans for a price-match scheme where it will compare prices with discount chains Aldi and Lidl as well as its larger rivals.
FTSE 100
7,895.85
16:59 19/04/24
Morrison (Wm) Supermarkets
286.40p
16:55 26/10/21
Sainsbury (J)
258.80p
16:40 19/04/24
Tesco
281.40p
16:59 19/04/24
The move is the first of its kind with Morrison being the first to price-match against either of the two German discounters.
Under the price-matching and loyalty scheme, which is expected to be fully rolled out by Christmas, customers will be able to earn points on their Match & More customer card for any items purchased that could have been bought cheaper at one of its competitors.
It will compare its mid-tier range products, covering brands, own label and fresh produce.
The move comes amid an increasingly fierce battle between the so-called "big four" and their growing rivals as shoppers turn to the cheaper stores to bag a bargain.
While the big four, which also consists Tesco, Sainsbury and Asda, have focused on lowering their prices on a permanent basis, discount stores are focusing on establishing themselves as sellers of quality, lower-priced products from lesser known European brands and producers.
Clive Black at Shore Capital said it will "watch with interest" to see how the scheme performs before making an assessment of it worth.
"However, sadly for us, we harbour a considerable degree of scepticism on its launch," he continued.
"For choice, we would rather that Morrison’s channelled its available resources into a more democratic process that looks after all of its customers at the same time, whilst progressively eroding the limited assortment discounters' price differential and at the same time more definitively extolling the virtues that the discounters cannot compete with; range, counters, service points and services."