Supermarkets cut costs to tackle rising cost of living
Asda and Morrisons have announced plans to help struggling shoppers amid the biggest cost of living crisis in decades with the energy price cap subjected to a 54% price surge and national insurance contributions hiked to 12 billion earlier this month.
If that wasn’t enough, supply chain issues have led to food shortages up and down the country and the inflation rate has hit a 30-year high of 7% as stagflation fears continue to grow.
With the government (so far) failing to introduce extra measures to tackle the cost of living crisis and 60,000 people expected to be plunged into poverty as a result, Asda and Morrisons have taken it upon themselves to cut the cost of hundreds of their much-loved products until the end of the year.
So, what discounts can you expect to see hit the shelves?
Asda will introduce more price cuts
Asda – the UK’s third-largest supermarket chain – has promised to slash the price of more than 100 family-favourites until the end of the year with an average saving of 12%.
This will include fresh fruit and vegetables, rice and noodles, and tea bags with research from the supermarket revealing that nine out of ten customers are worried about the impact of inflationary pressure on their budget.
It follows the supermarket giant’s pledge to increase its employees’ hourly rates by 7.9% to £10.10 in a bid to reward their staff for working through the pandemic.
Mohsin Issa, co-owner of Asda, said: “We know that household budgets are being squeezed by an increasing cost of living…we’re taking unprecedented action to give families some additional stability and certainty in their weekly shopping.”
Morrisons will cut over 500 products
Morrisons will cut the price of over 500 of their products for an average saving of 13% in a move that is expected to impact 6% of its total sales volume.
The discounts will cover refrigerated, frozen, and store cupboard items with cereal, cooking sauces, and meat amongst the hundreds of products reduced.
David Potts, chief executive of Morrisons, said: “We know that our customers are under real financial pressure at the moment, and we want to play our part in helping them when it comes to the cost of grocery shopping.
“These price cuts will have a noticeable and long-term impact on our customers’ budgets and demonstrate our commitment to offering them the best possible value.”
In the meantime, a ‘compare and save’ campaign has also launched in-store to help customers compare the price of their own-brand items against bigger name brands.
Other supermarkets will offer their own initiatives
It may have chosen not to introduce any large-scale cost-cutting initiatives but just last month, Ken Murphy, chief executive at Tesco, confirmed that the company continues to be “laser-focused on keeping the cost of the weekly shop in check.”
The household name – which has been recognised as the country’s favourite supermarket for five years running – already has several low-cost campaigns running including Low Everyday Prices, Aldi Price Match, and Clubcard Prices.
Sainsbury’s will continue with their current roster of low-price initiatives on their customers’ favourite products from meat and fish to poultry and dairy.
Waitrose – which topped the list as the second greenest grocer in Which? sustainability rankings earlier this year – is striving to reduce the cost of 1,000s of its shopping basket staples to ensure they continue to deliver on their promise to provide great value without compromising on quality.
M&S, on the other hand, has announced lower prices on its Remarksable range with the cost of everyday essentials, including break, milk, and beef mince, axed as part of a £100 million multi-year investment programme.
With customers turning to discount supermarkets to halve the cost of their weekly food shop, Aldi and Lidl have also reported steady market growth in the wake of the COVID-19 pandemic with cheaper retailers expected to come out on top as the cost of living climbs.
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