UK supermarket chain Morrisons slashes prices amid fierce competition

One of the UK’s top four supermarket chains, Morrisons has announced it is reducing prices of over 900 of its products, ahead of this week’s Christmas sales results.

Morrisons announced on Monday it would cut 20% off store products in a bid to catch upto its competitors.

Analysts have predicted Christmas sales results this week will show supermarket German chains, Aldi and Lidl on top, after the supermarkets slashed prices over the Christmas period.

Morrisons said it would cut an average of 20% off 935 products, including everyday items and cupboard staples such as tinned tomatoes, cereals, ready meals, and multivitamins.

The northern England supermarket said the price reductions would be held for a minimum of 12 weeks.

Morrisons marketing director, Andy Atkinson said: ‘We’re listening to customers who are telling us that their budgets will be stretched in January, so we are cutting every penny we can on the essentials that will help them feed their families.'

Morrisons shares trading slightly lower

This week will be a big week for retailers with Sainsbury’s expected to give an update on Christmas sales on Wednesday, followed by Tesco on Thursday.

Morrisons will give its update on Christmas sales on Tuesday, with analysts only predicting a slight rise in retail sales.

Morrison WM Supermarkets share price fell 0.35% on Monday at time of writing, with its last close at £214.95.

Aldi sales growth predicted to continue

Aldi reported retail sales increased by 16.8% in Christmas 2017, and analysts predict the growth in this year's sales could continue.

Aldi vowed in Ocotber last year it would slash prices further than its competitors ahead of the highly competitive Christmas holiday period.

Aldi has become the UK’s fifth biggest supermarket chain with 775 stores across the UK and Ireland, with a 7.6% market share.