Spanish retailer El Corte Inglés has announced plans to cut the prices of around 4,500 grocery lines by a reported 20 per cent, it has emerged.
With the company also reported by the Spanish media to have secured a €3.6bn refinancing of its debt this week, the move to introduce a more discount-focused pricing structure in the midst of Spain's hugely challenging economic climate will involve weekly reviews of fresh produce prices, as well as fortnightly reviews of prices listed for other items.
The new policy will be implemented across all of El Corte Inglés' retail banners, including department store food halls, Hipercor hypermarkets, Supercor supermarkets and convenience stores.
The group told the media it did not want to 'be the cheapest, `but` we want our prices to be as interesting as our competitors'.
It also revealed that it had been able to reduce its overheads through previously untapped economies of scale within the group but would also be lowering its margins, arguing that it was 'completely sure that the customer will react and we will gain in volume'.
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