Morrisons cuts prices to “fend off” foreign bidders, says analysts
Supermarket giant Morrisons is making aggressive price cuts to try to win back customers.
The claim comes from Kantar data analysed by Barclays.
It’s suggested that 46.2 per cent of Morrisons’ revenue in the 12 weeks to August came from discounted items.
The figure compares to a sector average of 32.3 per cent.
Morrisons was 5.3 per cent above any other retailer.
It’s thought Britain’s fourth biggest supermarket might be vulnerable to a foreign takeover as a slump in its share price and a weak pound continue to dog the business.
Also, German rivals Aldi and Lidl and putting pressure on all the supermarkets.
James Anstead, of Barclays, suggested Morrisons’ decision to deploy selected promotions was either “a very clever promotional strategy or an unsustainable approach”.
A spokesman for Morrisons – which is set to report its first-half results on Thursday – said:
“We remain focused on becoming more competitive, and that has involved a mixture of price reductions as well as promotions.”
It disputes Kantar’s figures.