Just weeks after Asda launched a price-matching scheme pegged against Aldi and Lidl, Morrisons has done the same as its new CEO Rami Baitiéh develops his strategy to win back shoppers.
From today, the supermarket will start displaying new signage in-store and online to highlight 200 everyday products that are price-matched to either Aldi or Lidl depending on whichever is cheaper.
Lines covered by the pledge include cupboard staples such as cornflakes, canned tomatoes, rice, and bread, as well as household cleaning items such as anti-bac spray, bleach and toilet rolls. As part of its commitment to the country’s farming sector, Morrisons is also including British beef mince, chicken fillets, semi-skimmed milk and carrots in the campaign.
Rachel Eyre, Morrisons Chief Customer and Marketing Officer, commented: “We want to reassure our customers that we have hundreds of products that are the same price or cheaper – with the quality they’ve come to expect from us – than those available at Aldi and Lidl which is why we have launched our new Price Match. We hope this new campaign will bring our quality and value into even sharper focus for our customers.”
Over the last year, Morrisons has been working to improve its competitiveness having lost market share to the discounters and Tesco and Sainsbury’s. As well as several rounds of price cuts, the chain has been offering lower prices through its More Card loyalty scheme.
Tesco and Sainsbury’s have credited their Aldi price matching schemes for helping stem the flow of shoppers to the discounters, which now control a combined 17% of the UK grocery market.
The latest move by Morrisons comes after last month’s announcement that it had agreed to a £2.5bn deal to sell its petrol forecourt business to sister company Motor Fuel Group (MFG). The move is expected to help the struggling supermarket shore up its balance sheet and provide it with a war chest to improve its offer.
Baitiéh, the former Carrefour exec who took over the top role from David Potts in November last year, recently said the group’s performance since the pandemic had not been good enough and he would announce new strategic plans for the business in March.
NAM Implications:
- Nice idea, but price-matching 200 everyday products may catch the headlines…
- …but won’t dent the market.
- The problem remains of having to fund price reductions/discounts…
- …from a high debt business model.
