Asda and Morrisons are cutting prices on hundreds of items as the traditional big supermarkets fight to retain market share. The two chains, along with Sainsbury's and Tesco, have faced pressure from the discount supermarkets Aldi and Lidl in recent years and months as shoppers' purses are squeezed yet further.
They have therefore revealed a raft of promotions. Morrisons has reduced 500 items, such as a 30-pack of eggs, which are now £2.99 (down from £3.40); paracetamol, which is 29p (down from 65p); and nappies, which are £1.29 (down from £1.40).
Over 180 additional products are now included in multibuy promotions, with more cereals eligible for the 'buy two for £1.80' deal and more ready meals included in the 'two for £5' range. Overall, the discounts will reduce the prices on some 500 products, which together form about six per cent of Morrisons's total sales.
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Asda, meanwhile, is reducing the prices of around 100 items, such as own-brand rice, which is going down from £1 to 75p. Products covered by the "dropped and locked" tag will see an average reduction of around 12 per cent.
Last week, Asda announced it was scrapping its Smart Price range and replacing it with a new line named Just Essentials by Asda. It says this will include a broader range of products.
Separately, Asda has finally agreed a pay rise with its staff. Retail workers will be paid £9.66 per hour from April 1, rising to £10.10 per hour from July. The pay rise, which takes Asda's pay to 60p per hour than the minimum wage, was agreed following months of discussions with staff unions the GMB (in Britain) and Usdaw (in Northern Ireland).
Nadine Houghton, the GMB's national officer, said: “It is fantastic news that people working in Asda stores will have more money in their pockets. It is what they deserve and urgently needed with the rising cost of living.
“GMB members in stores across the country have been campaigning hard to get Asda bosses to deliver better pay. We're glad they have listened.
“Retail workers, predominantly women, face the reality of living with low pay every day. Employers everywhere need to step up and properly reward these key workers who keep our high streets running.”
Usdaw's area organiser, Kieran Smyth, said: “In the course of our ongoing discussions with Asda, we raised the significant pressures our members face because of the cost of living crisis and agreed to renegotiate the pay deal we had agreed earlier this year. So we are pleased to have secured a significant increase that will make Asda a top-paying supermarket from July and takes staff beyond the real living wage.
"This new settlement is a significant success for Usdaw’s New Deal for Workers campaign, which at its core has the call for at least £10 per hour. It’s been a tough time for food retail staff who have worked throughout the pandemic in difficult circumstances and are now struggling with rapidly rising prices, energy and fuel costs.
"Shopworkers provide the essential service of keeping the nation fed and deserve our support, respect and appreciation. Most of all they deserve decent pay and this deal is a welcome boost.”
