Morrisons pledges to slash prices as price war intensifies

Morrisons, a privately-owned supermarket, has announced plans to match prices with its competitors on hundreds of products in an attempt to curb the escalating price war among UK supermarkets. The retailer, which is debt-ridden, has committed to ensuring that its 500 "everyday essentials" will be priced competitively against Tesco, Sainsbury’s, Asda, Aldi, and Lidl.

With recent data indicating that aggressive discounting among rival grocers is preventing prices from rising further, British supermarkets are striving to retain cash-strapped consumers. Although industry experts had predicted that the ongoing war in Iran could fuel food inflation this year, the pace of price increases slowed in June. In response, retailers argue that their discounting efforts are protecting shoppers from the repercussions of the conflict, despite no government intervention.

Morrisons will extend this pricing strategy to include fresh items from its fishmonger and bakery counters. The supermarket chain asserts that this commitment applies to widely-consumed products such as bananas, bread, chicken fillets, bacon, and pizza.

However, the initiative has sparked a debate within the grocery industry. Aldi's CEO, Giles Hurley, has called for a government crackdown on what he perceives as "rip-off" discounts, arguing that supermarkets offering loyalty card prices are merely deceiving customers. In response, Tesco and Sainsbury’s have defended their loyalty discount practices, citing an investigation by the competition watchdog that largely cleared supermarkets of any wrongdoing.

Alex Paver, Morrisons's customer and marketing director, emphasized the importance of providing value to customers without compromising on product quality. According to Paver, "Customers shouldn’t have to choose between great prices and great quality – and at Morrisons, they don’t have to." The Unbeatable price commitment, Morrisons claims, ensures that its prices on selected products will remain unbeatable by its competitors.

Despite Morrisons' efforts to regain market share, the company continues to face significant challenges. In the fiscal year ending October 2025, the grocer reported a pre-tax loss of £629 million, while its net debt increased from £7.1 billion to £7.5 billion. The supermarket's debt burden stems from its £7 billion acquisition by private equity firm Clayton Dubilier & Rice (CD&R) in 2021.

As Morrisons battles to compete with the rapidly growing German discounters Aldi and Lidl, it has slipped to fifth place in market share.