Morrisons is cutting the price of milk, eggs, butter and 200 other essentials, intensifying a price war among the biggest UK supermarkets.
Morrisons own-brand products and branded products are included in the cuts. Four pints of semi-skimmed milk will soon be 11p cheaper, at 89p, while free range eggs will be 20p cheaper, at £1.69.
Meanwhile Tampax regular will be 46p cheaper, at £1.29 and Shredded Wheat will be 21p cheaper at £2.19.
Research shows that price is the most significant motivator behind supermarket choice, with 83% of people claiming it to be 'important'.
The cuts are the first to be announced under the leadership of David Potts, the company’s chief executive since March.
Morrisons is investing £1 billion over three years on lowering prices is stores. It said it would not be passing the cost of these price cuts onto suppliers.
Morrisons is the UK’s fourth biggest supermarket, but like rivals Tesco, Asda and Sainsbury’s, it has suffered falling revenues as shoppers turn to discount stores like Aldi and Lidl.
Deflation, driven by the low price of oil and commodities, it also driving prices lower, threatening profits.
Morrisons was hit by pre-tax losses of £792 million last year, a significant increase from £176 million losses of 2013/14.
Sales, down 5.9 per cent in the year ending February 1, and price cuts of £315 million, weighed on profits.
In April it announced job losses of £800 million after cutting 720 jobs from its head office.Reuse content