The supermarket chain Tesco turned up the pressure on its rivals yesterday by cutting the cost of more than 350 products by an average of 12 per cent from Monday.
"Everyone wants to save money on their weekly shop. Customers vote with their feet and we're committed to continuing to win customers by cutting prices and helping them spend less every day," said Tim Mason, Tesco's marketing director.
The price cuts, which will cost the supermarket some £60m, cover every part of its offering including fruit and vegetables, meat, snacks, wine, homeware and health and beauty products at all of its 780 stores in the UK.
"These price cuts focus on the essential items people buy every week. Customers want to know they're getting the best deal when they shop so we check the prices of 10,000 items every week to make sure we offer unbeatable value," Mr Mason said.
Some prices, the supermarket said, would fall by as much as 46 per cent in its latest assault on the UK's food retailing market where it has the largest market share.
The price of a 50-pack of own-brand white plastic cups, for example, is being reduced to 97p from £1.79 - a cut of 46 per cent. And the price of a large bag of cashew nuts falls to 93p from £1.69 - a fall of 45 per cent.
"We've invested £1.2bn in reducing prices and this creates a virtuous circle for us. By reducing price we increase volumes, which helps us buy for less - and when we buy for less we pass these savings on to customers," he said.
The supermarket last carried out a major price-cutting programme at the end of April - when it took £60m off a selection of 1,000 of its products.
A spokesperson for Asda said that it had no plans to respond immediately.Reuse content