London Daily

Focus on the big picture.
Wednesday, Jun 24, 2026

Asda and Morrisons cut prices as supermarkets fight for customers

Asda and Morrisons cut prices as supermarkets fight for customers

Morrisons and Asda are cutting prices as supermarkets face a fierce battle for customers with the soaring cost of living hitting households' finances.
Both supermarkets have been losing customers to discounters such as Aldi and Lidl as price pressures grow.

Morrisons said it would offer an average 13% price cut on more than 500 goods including eggs, beef and rice.

Meanwhile, Asda announced it had "dropped and locked in" prices on some products until the end of the year.

The cost of living is rising at its fastest rate in 30 years in part due to soaring food prices.

Morrisons, which is the UK's fourth-largest supermarket after Tesco, Sainsbury's and Asda, said the cuts would cover refrigerated, frozen and store cupboard food and affect around 6% of its total sales volume.

"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," said boss David Potts.

Items being discounted include cereal, cooking sauces, chicken and sausages as well as flour, bread and ham.

Meanwhile, Asda said more than 100 products covered by its "dropped and locked" promise ranged from some fresh fruit and vegetables to fresh meat and frozen food.

The supermarket said prices would drop by 12% on average.

"We know that household budgets are being squeezed by an increasing cost of living and we are committed to doing everything we can to support our customers, colleagues and communities in these exceptionally tough times," said Mohsin Issa, co-owner of Asda.

The cost of living squeeze is starting to bite and shoppers are on the hunt for value in the supermarket aisles.

Recent industry data shows more people are ditching the big brands in favour of own-label products to save money.

They've also been turning to the discounters, Aldi and Lidl. After a tough pandemic, they've been growing market share.

Tesco and Sainsbury's have Aldi price-matching campaigns and have been performing better than Morrisons and Asda.

Now these two are fighting back. They need to. Morrisons and Asda have traditionally served budget conscious shoppers and can't afford to haemorrhage customers to the discounters.

Last month, Asda launched its Just Essentials range promising an expanded line of low-cost products in all its stores from May.

In February, the grocer said it would offer a wider range of low-cost goods in its stores after being criticised by food poverty campaigner and chef Jack Monroe.

Last week, the UK's largest supermarket chain, Tesco, said its profits last year more than trebled, but said its performance this year would be affected by the need to keep prices down.

Both Asda and Morrisons are losing out as customers turn to discounters Aldi and Lidl, to cut their costs, according to research firm Kantar.

UK grocery price inflation hit 5.2% in the 12 weeks to 20 March, it said, its highest level since April 2012.

In that time, Lidl and Aldi were the only big supermarkets to see their sales and market shares rise. By contrast, Morrisons and Asda saw the biggest drops in sales and market share.

Kantar's head of retail Fraser McKevitt said: "We're really starting to see the switch from the pandemic being the dominant factor driving our shopping behaviour towards the growing impact of inflation, as the cost of living becomes the bigger issue on consumers' minds."

In March, one food boss told the BBC food price inflation could rise as a high as 15% this year as a result of the war in Ukraine.

Ronald Kers, the boss of food firm 2 Sisters, blamed the rising prices of wheat and natural gas, which is used to heat greenhouses and to make fertiliser.
Newsletter

Related Articles

0:00
0:00
Close
UK Biotechnology Sector Receives Increased Public Funding to Support Regional Growth
Police Chiefs Update National Protest Management Guidelines Amid Rising Demonstration Activity
UK Aviation Regulator Expands Support for Regional Airports to Strengthen Domestic Routes
CMA Launches Investigation Into Retail Pricing Across UK Grocery Sector
UK Energy Operator Warns of Winter Supply Pressures Despite Stable Overall Grid Outlook
UK Research Council Expands Funding for Regional Biotechnology and Life Sciences Clusters
UK Compensation Scheme for Post Office Horizon Scandal Reaches 80 Percent Completion
Police Chiefs Issue Updated National Guidance on Managing Large Public Demonstrations
UK Expands Regional Airport Funding Scheme to Boost Domestic Connectivity
UK Competition Watchdog Launches Inquiry Into Grocery Pricing Practices
National Grid Warns of Tight Energy Management Needs During Upcoming Winter Peak Demand
UK Education Department Introduces National Standards for AI Use in Secondary Schools
UK High Court Clears North Sea Carbon Capture Project After Final Legal Challenge Fails
Northern Ireland Leaders Hold Emergency Talks on Trade Disruption Under Windsor Framework
Welsh Government Moves to Expand Social Housing in Response to Severe Affordability Pressures
UK Economy Sees Unexpected Rise in Business Investment in Second Quarter, ONS Data Shows
Scottish Government Unveils Multi-Billion Pound Investment Plan for Renewable Energy and Grid Expansion
UK and EU Agree Enhanced Defence Cooperation Pact Covering Intelligence and North Sea Security
Prime Minister Orders Independent Review of NHS Performance After Record Waiting Lists
Bank of England Holds Interest Rates at 5 Percent as Services Inflation Remains Persistent
UK Heatwave Disrupts Transport, Healthcare and Public Services as Red Weather Alerts Expand Nationwide
Barclays Warns of Growing Cyber Risk Divide Between Large UK Firms and Micro Businesses
European Defence Plans Including Ukraine Integration Prompt UK Strategic Reassessment
UK Equity Markets React as US–Iran Peace Roadmap Eases Oil Price Pressures
United Kingdom Expands Global Clean Energy Partnerships With Brazil, Morocco and Tanzania
Lord David Frost Urges Incoming UK Leadership to Abandon EU Regulatory Reset Strategy
Housing Groups Support Amendment to Strengthen Fire and Gas Safety Access Powers in Social Housing
South London NHS Estates Staff Ballot on Industrial Action Over Pay Structures in Hospital Maintenance Services
United Kingdom Government Invests £60 Million in AI Research Labs at Oxford and University College London
Barclays Cyber Security Report Highlights Rising Threat Exposure Among UK Small Businesses in AI-Driven Attacks
UK Met Office Heatwave Triggers Transport Warnings as Rail Operators Urge Cancellations Amid Infrastructure Strain
South London NHS Estates Workers Ballot for Strike Action Over Pay Disputes Across Major London Hospitals
Barclays Warns of Severe Cyber Security Gap Between Large Corporations and Small Businesses in the United Kingdom
United Kingdom Government Allocates £60 Million for Artificial Intelligence Research Laboratories at Oxford and UCL
National Health Service Approves Teplizumab Treatment to Delay Onset of Type One Diabetes in First European Rollout
Met Office Issues Rare Red Extreme Heat Warning Across London, South East and West Midlands as Transport and Health Systems Face Disruption
Prime Minister Keir Starmer Resigns After Labour Party Revolt Following Economic Stagnation and Local Election Losses
United Kingdom Economy Contracts for Second Consecutive Month as Private Sector Weakens and Job Loss Fears Rise
Taxpayer Support Grows for Higher Digital Levies on Multinational Tech Companies
Bank of England Signals Caution Over Inflation Despite Easing Energy Prices
Lloyds Banking Group Expands Artificial Intelligence Hiring Amid Sector-Wide Automation Shift
Film Producer Corporate Collapse Leaves Creditors Facing Unrecoverable Losses
UK Ten-Year Brexit Anniversary Highlights Ongoing Political and Economic Uncertainty
Nottingham Maternity Scandal Inquiry Reveals Systemic Failings in NHS Care
Met Office Heatwave Prompts Public Health Warnings Across United Kingdom
Concerns Rise Over Fiscal Stability as Political Uncertainty Weighs on UK Borrowing Costs
UK Taxpayers Back Higher Digital Taxes on Global Technology Firms, Survey Shows
Bank of England Holds Interest Rates Steady Amid Persistent Services Inflation
Reform UK and Opposition Leaders Call for General Election Following Starmer’s Departure
Ten Years After Brexit Referendum, UK Faces Ongoing Political Fragmentation and Economic Debate
×