Morrisons’ interim results: past year’s challenges
Supermarket price war on the horizon
Morrisons’ pledge to cut its prices, in a bid to combat discounters Aldi and Lidl, was likely to start a supermarket price war, experts predicted in March.
The retailer posted a loss of £176M, with its full-year results in March.
Tesco and Sainsbury would be forced to respond to lower prices from Morrisons, said Euan Stirling, of Standard Life Investors.
“I don’t think they can stand by and let Morrisons attack them on price,” said Stirling. “I think it is almost inevitable we will see much more aggressive price action, from Tesco and Sainsbury and others in the sector,” he told BBC Radio 4’s Today programme.
City analyst Shore Capital said Morrisons’ decision to re-base its trading margins was probably “a game changer” for British supermarkets.
