Supermarkets engage in price war to lure back customers

Jul 20 2008 By Fariha Karim

SHOPPERS are to reap the benefits of price wars between the big four supermarkets.

Bargain-hunters were said to be deserting the big names for budget stores in a bid to save their cash.

And now bosses at Asda, Tesco, Morrisons and Sainsbury's are wheeling out inflation-busting cuts to keep their customers.

Morrisons last week began a price crunch during which they slashed prices of barbecue foods down to 50p.

They plan to do the same with pies and cooked meats on Monday.

Discounts at Sainsbury's this weekend included the prices of strawberries, raspberries and cauliflower cut by more than half.

Experts interpreted the moves as an attempt to stop shoppers deserting the big retailers for stores such as Aldi and Lidl.

The two budget supermarkets have been enjoying a surge in popularity as shoppers feel the pinch.

Planet Retail analyst Robert Gregory said: "The big four retailers have always competed on price.

"But what is quite worrying for them is that if Aldi and Lidl gain market share, that could alter the market in the longer term."

THE BARGAINS

Here are some of the Big Four's price cuts:

Asda - 500g Beef mince reduced from £1.30 to 50p

Sainsbury's - 454g Strawberries reduced from £3.99 to £1.99

Morrisons - Four meat pies, from £1.69 to 50p

Tesco - 187g shell king prawns, were £2.79, now two for £5.