WEST Yorkshire supermarkets Asda and Morrisons are expected to slash their prices in the run up to Christmas, paving the way for rivals to follow.
The region’s big-name retailers have both promised to spend £1bn each on price cuts.
The news comes as it was revealed that food inflation has hit an all time low, spelling more good news for hard-up consumers. Food inflation grew by just 0.3 per cent in September, according to the latest BRC-Nielsen shopping data. The survey showed that over a third of all groceries going through the till last month were on promotion or special offer, as customers try to cut their household expenses.
Bradford-based Morrisons said it will launch more promotions before the all-important festive season.
Morrisons’ chief executive Dalton Philips said the grocery sector faces a tough Christmas and Morrisons needs to ensure customers don’t need to shop elsewhere.
Last week the group unveiled plans for a new loyalty card that promises to match discounters Aldi and Lidl on price.
Last year Morrisons was caught on the hop by cash-strapped shoppers choosing to stick with Aldi and Lidl over Christmas rather than trade up to Morrisons for their festive shop.
Leeds-based Asda has been leading the way on price cuts and promises to be 10 per cent cheaper than its main rivals or it will reimburse the difference.
Asda’s chief executive Andy Clarke said the price differential between Asda and Aldi and Lidl is now narrower than it has ever been, and some weeks Asda is beating the discounters on a basket of goods.
Aldi and Lidl have made great strides by offering cheap basics whilst also luring in middle class shoppers with luxuries such as quality champagne and lobster at rock bottom prices. This year Aldi will up its game by offering Beluga caviar, dressed crab, a whole goose and a five-bird-roast.