Morrisons wades into pricing wars as recession begins to bite

The retailer announced it would be lowering prices on over 400 grocery essentials by an average of 23% over the weekend, due to the UK being in recession.

The grocer said the discounts would be available across a range of fruit and vegetables, meat and poultry, bread and cornflakes, rice and pasta, plus bleach, cleaning fluid and toilet rolls.

Morrisons said the move follows the investment in pricing it has been making throughout the year, which has already seen prices on 800 products reduced in that time. 

Lower prices are intended to help families as they begin to return to schools and offices, with many customers worried about the ongoing pandemic and its long-term effects on the UK economy. 

Morrisons chief executive David Potts said: “It’s been a tough year for many families who find themselves stretched. To play our full part in feeding the nation, we’re cutting prices and holding them low to make our food more affordable for everyone.

“These are not short-term promotions; these are price cuts that are here to stay.”

Morrisons’ move is just the latest round of price posturing between the big four grocers and the discounters, as the true effects of the recession begin to be felt by customers. 

Last week, as part of unveiling a new nationwide campaign, Asda unveiled £100m worth of investment in lowering its prices. 

Both Tesco and Sainsbury’s have also begun to manoeuvre on price too, in a bid to steal a march on the discounters and each other heading into the autumn. 

Despite the UK technically falling into recession a few months ago, with the government furlough scheme continuing and many people’s movements still restricted the full effects on the economy have not yet been fully felt. 

However, with the government pushing for people to return to schools and offices, and with the furlough scheme set to end by October, customer recessionary behaviour is likely to increase.