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Anorak | Morrison’s Promises To Compete Into Bankruptcy

Morrison’s Promises To Compete Into Bankruptcy

by | 2nd, October 2014

This is something of a hostage to fortune: Morrison’s has promised to match prices with the other supermarkets in the UK. OK, they often do that against Waitrose (which is generally more expensive anyway), Sainsbury’s and the like but now, in a piece of majestic bravery, they’re going to try to go head to head with Aldi and Lil. And it’s really not certain that this is going to work out well either. For there’s a very large and very basic problem here :

Morrisons has announced a new price match system, which is set to exacerbate Britain’s brutal supermarket war.

The fourth biggest grocery chain said that in addition to price matching Tesco, Asda and Sainsbury’s, it would now do the same with discounters Aldi and Lidl.

The new price comparison and points system will see users automatically refunded card points, along with extra points for selected products and fuel.

Here’s what the problem is. The actual price a supermarket pays for something isn’t really what determines what it then tries to charge you for it. Sure, it has an influence and we’ll get to that in just a moment. But it’s all the other costs associated that do make up the total price. And when you think about it a supermarket is really just a

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Posted: 2nd, October 2014 | In: Money Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink