Price war to hurt supermarket chains, warns Waitrose boss

July 7, 2015 | By RetailME Bureau

Relentless price-cutting to keep pace with German discounters Aldi and Lidl is damaging consumer choice in the UK, which could even result in a company failure unless the biggest chains alter course, cautions Mark Price, managing director of British supermarket chain Waitrose and deputy chairman of the John Lewis Partnership.

According to him, dropping prices won’t make people eat more, thereby resulting in a zero sum game. “It is time that retailers start thinking of attracting customers in a better way. Otherwise the move down will create real difficulty for one or two players.”

Way back in 2009, Waitrose had launched a value range, Essential Waitrose, to keep shoppers in stores. Last month it launched a promotion letting customers pick ten items from a range of 1,000 at a 20% discount. “Eventually you’ve got to find something else. The only way to win long-term is to get customers trading up again or giving people another reason to come to your stores,” he explains.

No wonder Waitrose emerged as one of the best performing grocers according to figures released by market researcher Nielsen last week. It is thought to be more insulated from the consumer shift than the four biggest players – Tesco, Asda, Morrisons and Sainsbury’s.

“Rapid responses of Tesco, Asda, Morrisons and Sainsbury’s to each other’s price-cutting are creating only fractional differences in the performance of the best and worst. Aldi and Lidl, meanwhile, are opening stores faster than the ‘big four’, rapidly gaining market share,” Price observes. Aldi, which claims to be 15% cheaper than its bigger rivals on a basket of products, has 600 stores currently and aims to touch the 1,000-mark by 2022.



Previous Article Next Article



Employee retention has been on every company’s minds, especially since the fears 

Continue Reading

August 16, 2022 | By Shruthi Nair

The Frozen Chicken’ as Spinneys was fondly referred to back in the 

Continue Reading

August 8, 2022 | By Shruthi Nair, a Q-Commerce marketplace startup just announced their go live date in the 

Continue Reading

July 20, 2022 | By Justina Eitzinger

GMG, a global well-being company retailing, distributing, and manufacturing a portfolio of leading 

Continue Reading

July 19, 2022 | By Justina Eitzinger

Lulu Group International recently introduced the world’s first AI-powered Food Delivery Robot 

Continue Reading

May 9, 2022 | By Shruthi Nair

Eid Al-Fitr is an occasion to gather with your friends and family 

Continue Reading

April 29, 2022 | By Zubina Ahmed

Leading retailer LuLu Group further strengthened its presence in the Emirate of 

Continue Reading

April 28, 2022 | By RetailME Bureau

Jones the Grocer, the Australian gourmet grocer and café chain, announces further 

Continue Reading

April 28, 2022 | By RetailME Bureau

What is a perfect healthy snack for Ramadan? An assortment of  dried 

Continue Reading

April 14, 2022 | By Zubina Ahmed

With Ramadan almost at it’s first week, we are wondering where can 

Continue Reading

April 6, 2022 | By Zubina Ahmed

In spirit of the holy month, Amazon announced that it will contribute 

Continue Reading

April 5, 2022 | By RetailME Bureau

As consumer behaviour is changing and the demand for delivery is expanding, 

Continue Reading

March 30, 2022 | By Shruthi Nair

Download Images RetailME Magazine