Morrisons' price campaign faces new Aldi threat

Discounter Aldi has reacted to Morrisons’ recent ramping up of price competition with a wave of price reductions and a new advertising campaign.

After Morrisons’ launched its new 'price crunch' campaign at the start of the month, Aldi said it has cut swathes of prices "in order to maintain its price advantage of up to 38%" versus the larger rival.

Aldi made price cuts across a range of its core lines including fresh meat, fresh fruit and vegetables and other household staples.

The German-owned group has also launched a nationwide advertising campaign "to ensure shoppers understand it remains by far the lowest-priced supermarket in the UK".

It said in the 12 weeks to 3 January, the average item at Aldi was 29% cheaper compared with the average at eight competitors, an even wider gap than a year earlier.

“Our competitors continue to claim that they are closing the price gap. We think it is important to make it clear to shoppers that any challenge to our price leadership position will not succeed," said chief executive Matthew Barnes.

“Aldi remains Britain’s lowest-priced supermarket by a significant margin and that is a position we will retain next month, next year and forever.

“While other retailers talk up price cuts and infuriate shoppers with misleading price-match schemes, we keep it simple with a consistent promise: whenever you visit Aldi, you’re paying the lowest prices in Britain."