Take advantage of the supermarket price war
July 6, 2008
Most of us will be quick to agree that there has not been much good news on the financial front for most households for many months now. The global credit crunch brought with it complete chaos in the financial markets, leaving many consumers unable to get affordable finance in any sector, from loans and mortgages to credit cards and car loans. On top of this the cost of petrol has rocketed to record highs, leaving drivers financially strapped, energy firms have increased their prices significantly and intend to do so again before the year is out, and the cost of food has spiralled out of control, adding hundreds of pounds to the average annual grocery bill.
Below inflation pay rises have not helped matters, and many households are on the financial brink at the moment. This is why many consumers have decided to look at ways of cutting back on monthly outgoings, and some have done this by turning to cheaper supermarkets in order to get their weekly or monthly groceries, including places such as Aldi and Lidl. It is probably this that has sparked some reaction from the supermarket giants, who have finally realised that their sky-high prices are doing little to assist struggling families or to help them to keep their loyal customer base.
The good news is that earlier this week the UK’s supermarket giants embarked upon a food price way, and for consumers this means that they could benefit from lower prices on a wide range of products, helping to cut back on their grocery bill without having to cut back on choice and convenience. Asda ran a special offer this weekend, where it offered a range of staple foods at just fifty pence each. One official from Asda said: “Times are getting tough and people are feeling the pinch so we have reduced the price of these 10 staple items over the weekend. It is going back to the basics, like bread, eggs and butter and fruit and veg as well.”
The move by Asda has seen other supermarket giants, Tesco and Sainsbury’s, launch their own promotions by cutting back prices on a range of their products in order to win customers. Tesco claims that it will be cutting prices on a range of groceries by up to 50% in some cases. Temporary price cuts are being introduced on a range of summer foods by rival supermarket Sainsbury’s and industry officials are convinced that it will not be long before other supermarkets such as Morrison’s join in the price war, which will mean even greater choice for consumers.
Officials from the National Consumer Council were pleased with the news, and one official said: “Whether these are headline-grabbing gimmicks or a longer-term trend, it is just too early to tell. We would urge retailers to keep offering healthier options at affordable prices. We also hope that concentrating on prices will not distract supermarkets from encouraging shoppers to make greener choices when filling their trolleys.”
Recent additions:
- Building societies enjoy an increase in deposits
- Chancellor responds to questions from the Treasury
- Faster bank transfers could mean increase risk of fraud
- Switching banks was rife this year
- Rochdale credit union collapses
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