London Daily

Focus on the big picture.
Monday, Jul 06, 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
Office for National Statistics Updates Historical Investment Data Review to Improve Accuracy
Department for Science, Innovation and Technology Highlights Economic Gains From Digital Inclusion
Debate Intensifies Over UK Defence Strategy and Domestic Security Priorities
Report Warns Full Transport Accessibility Could Add £176 Billion to UK Economy Annually
Medicines Regulator Approves First Targeted Treatment for Advanced Merkel Cell Skin Cancer
Government Commits £22 Million to Brighton Seafront Infrastructure Renewal and Transport Safety
National Security Bill Returns to House of Commons Amid Calls to Protect Humanitarian Work
Government Tightens Overseas Political Donation Rules to Strengthen Safeguards Against Foreign Influence
NHS Maternity Reform Expands Central Oversight After Critical National Review
Dover Border Warnings Highlight Post-Brexit Pressure on Cross-Channel Trade
Private Nuclear Consortium Advances £35 Billion Small Reactor Strategy in UK
UK Labour Leadership Signals Shift Toward Reindustrialisation and Regional Power
House of Lords Debates Rail Nationalisation Bill to Create Great British Railways
Scottish Affairs Committee Expands Inquiry Into SNP Financial Conduct
Evri Launches £1.2 Million Defamation Case Against BBC Over Panorama Investigation
Port of Dover Warns of Border Delays as EU Entry-Exit System Looms
Nigel Farage Referred to Standards Watchdog Over Alleged Undeclared Benefits
UK Government Faces Scrutiny Over Claimed AI Datacentre Investment After FOI Findings
UK and India Finalise Trade Agreement Rules Ahead of Mid-July Implementation
UK Government Establishes National Maternity Commissioner After Major Review of NHS Care Failures
Private Consortium Plans £35 Billion UK Nuclear Programme Targeting Small Modular Reactor Rollout
Andy Burnham Sets Out Ten-Year Reindustrialisation and Devolution Plan as Leadership Transition to UK Premiership Advances
Morocco and France Advance as 2026 FIFA World Cup Enters Quarterfinals.
Historic 2026 Tour de France Opens in Barcelona With Revamped Team Time Trial.
Global Mergers and Acquisitions Approach $4 Trillion Defying Geopolitical Tumult.
Negotiators Advance 20-Point Framework for Gaza Ceasefire and Demilitarization.
OECD Warns Middle East Conflict Will Depress Global Economic Growth.
Ukrainian Drones Strike Major Oil Terminal in St. Petersburg.
World Meteorological Organization Issues Urgent Alert Over Rapidly Intensifying El Niño.
United States Commemorates 250th Anniversary With Diplomatic Summits and Global Flotilla.
Iran Begins Days-Long Funeral for Supreme Leader Khamenei Amid Strait of Hormuz Standoff.
Technology giant reports surging carbon emissions driven by artificial intelligence infrastructure demands.
Artificial intelligence adoption accelerates workforce reductions across the technology and financial sectors.
Global technology and financial conglomerates collaborate to launch a new stablecoin standard.
United States regulators lift export restrictions on a major frontier artificial intelligence model.
Royal Society Exhibition Highlights Growing Focus on Public Trust in Science
Energy Costs and Supply Chain Risks Continue to Shape UK Business Strategy
Rapid Rise in Artificial Intelligence Adoption Reshapes UK Corporate Operations, ONS Says
UK Businesses Turn Defensive as Economic Outlook Weakens, Institute of Directors Data Shows
UK Government Faces Criticism Over Late Extension of Pub Hours for England Match
Inquest Continues Into Death of Noah Donohoe as Jury Deliberates Findings
Calls for Stronger Wildlife Attraction Safety Rules After Crocodile Enclosure Injury
City Fire Under Control After Major Blaze Sends Smoke Across Urban Area
Police Investigation Continues After Officer Killed During Road Closure Duties
Blackpool Hotel Fined £120,000 After Electric Shock Incident Involving Child
Whistleblowers Allege Delays in UK Special Educational Needs Support Services
Calls Grow for Improved Support for UK Armed Forces Personnel Facing Health Conditions
Rising UK Energy Price Cap Increase Prompts Wider Concerns Over Household Pressures
UK Businesses Remain Concerned Over Global Conflict Risks to Supply Chains, ONS Finds
Office for National Statistics Reports Rising Adoption of Artificial Intelligence Across UK Businesses
×