Morrisons has launched another round of price cuts today, slashing the cost of 200 everyday items by up to a third as the raging supermarket price war shows no sign of abating.
The price of bread, milk and butter will be cut alongside products such as tampons and tuna as chief executive David Potts attempts to turn the grocer around.
Potts claimed that the price drops mean Morrisons' "cupboard essentials will be amongst the lowest on the market". Morrisons also promised to "simplify promotions" and make it easier for customers to shop for the best value.
These are the first cuts instructed by Potts, who replaced Dalton Philips in the role in January after a disastrous few years for the supermarket. Morrisons reported a pre-tax loss of £792m ($1.2bn, €1.09bn) in March and has been consistently losing market share, although Kantar data recently showed a small uptick in sales.
The company's troubles have been linked to its delay in entering the convenience store market and launching online shopping, as well as a lack of presence in London and the South East.
German supermarkets Aldi and Lidl have eroded the market share of all of the so called Big Four – Tesco, Sainsbury's, Asda and Morrisons – with their cut price offerings, embroiling the established brands in a bitter price war as they try to compete.
Morrisons alone has made cuts to 1,665 products in the last year and all of the major supermarkets have invested billions in slashing prices. While good news for consumers, who have seen the price of everyday staples drop dramatically, it has meant bad news for supermarkets.
In May, Walmart-owned Asda said like-for-like sales plummeted 3.9% in the last quarter, with chief executive Andy Clarke saying he expected prices to continue to drop across the sector. In the same month Sainsbury's reported its first annual loss in a decade as price cuts and property write downs took their toll, with boss Mike Coupe saying the market will remain "challenging".
Tesco, which also replaced its chief executive last year amid embarrassing financial results and an accounting scandal, has also slashed prices, the latest round of cuts coming in January.
Morrisons' cuts will be on branded and own brand everyday basket essentials including the following: