Morrisons has marked its takeover of Safeway by announcing a wave of price cuts.
The supermarket said it would reduce the prices of 300 basic products immediately, as the first step in its plan to bring Safeway’s prices down to match those in existing outlets.
Sir Ken Morrison said: “It’s over 300 price cuts on everyday items, things that people will really notice, in more than 300 stores." While no fresh produce line was singled out by Morrisons, it is a reasonable assumption that some will be affected under these terms.
Morrisons has refused to say how much the reductions will cost, but the firm has promised to spend up to £500 million a year on bringing prices down.
The supermarket has also announced an ambitious store-conversion plan. The Safeway brand will disappear from all but the 138 smallest stores, those with less than 15,000 sq ft of floor space. These stores will be renamed Safeway Compact.
By August Morrisons hopes to rebrand three branches a week. It will also open eight stores in 2004.
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