London Daily

Focus on the big picture.
Wednesday, Sep 02, 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
Cleveland Police Receive £2 Million to Tackle Serious Crime in Middlesbrough
Number of Young People in England Without a Close Friend Reaches Record Level
Five Arrested After Newborn Baby Dies From Stab Wounds in Sheffield
Nigel Farage Faces Questions Over Reported Second Parliamentary Standards Investigation
UK Retirement Funding Requirement Rises by £64,000 Compared With 2021
UK House Prices Rise for First Time Since April, Nationwide Says
FCA Chief Faces Allegations of Intimidating Consumer Group Over £9 Billion Car Loan Inquiry
Scottish Government Presses Ahead With Cap on Essential Food Prices
Burnham Government Moves to Overhaul Early Prison Release Scheme
UK Records Hottest Summer on Record in 2026, Met Office Says
UK Government Announces Major Reset of Diplomatic Policy Towards Israel
UK Pushes Back After Trump Reopens Falkland Islands Sovereignty Dispute
Keir Starmer Resigns as MP, Triggering Holborn and St Pancras By-Election
Andy Burnham Blames Brexit for UK’s Decade of Weak Growth in First Commons Address
England Faces Renewed Scrutiny Over Sewage Discharges and Water Quality
Victoria Beckham Business Reports First Operating Profit Since Launch
BT Expects £2 Billion From Copper Sales During Full-Fibre Rollout
UK Train Drivers Secure 3.6% Pay Rise and Avert Strike Action
FCA Chief Faces Scrutiny Over Alleged Pressure on Consumer Group in Car Finance Case
Kemi Badenoch Names Andrew Griffith Shadow Chancellor in Conservative Reshuffle
UK House Prices Rise for First Time Since April
UK Shop-Price Inflation Accelerates to 1.5% in August
Met Office Data Point to Hottest UK Summer on Record
UK Announces Emergency Prison Release Measures and £110 Million Capacity Expansion
UK Launches Expanded Free School Meals and 1,400 Breakfast Clubs
Bank of England Governor Warns G20 of AI-Related Economic and Cyber Risks
Prime Minister Andy Burnham Calls for Greater Public Control of Water, Energy and Transport
UK Gains Full Access to £13 Trillion Trans-Pacific Trade Bloc
UK Long-Term Borrowing Costs Hit 28-Year High as Oil Shock Drives Global Bond Selloff
Royal Mail Keeps First-Class Stamps at £1.80 and Second-Class at 91p
Church of England Prepares Formal Apology Over Historical Forced Adoptions
UK Competition Regulator Caps Veterinary Prescription Fees at £21
UK Aviation Authorities Roll Out Airspace Changes to Reduce Flight Delays
England Makes School Allergy Policies Mandatory Under Benedict’s Law
England and Wales Tighten Child Safeguarding Checks by Removing Supervision Exemption
Cornwall Geothermal Plant Begins Commercial Power and Lithium Operations
UK Inflation Holds Near 2.9% as Energy Costs Remain a Risk
UK Productivity Growth Averages 1.1% Over Two Years, Resolution Foundation Says
England Introduces Nationwide School Smartphone Ban and Uniform Limits
UK Gives Border Officers New Powers to Seize Migrants’ Mobile Phones
Green Party Wins First Westminster By-Election in Gorton and Denton
UK and EU Advance Gibraltar Border Deal Allowing Spanish Guards to Conduct Arrival Checks
Robert Jenrick Joins Reform UK After Losing Conservative Whip
Andy Burnham Faces First Prime Minister’s Questions After Labour Cabinet Overhaul
ScottishPower Recycles Nearly All Materials From Historic Hagshaw Hill Wind Farm
Millions Travel Across England, Wales and Northern Ireland for Summer Bank Holiday
Met Office Issues Yellow Thunderstorm Warnings Across Southern England
Four Arrested After Bank Holiday Stabbing Violence in Kettering
Scottish Chamber of Commerce Warns Tax and Business Costs Risk Holding Back Scotland
UK Government Launches Youth Employment Drive With Major Retailers
×