Morrisons is putting “enormous pressure” on its fresh produce buyers in the midst of a UK retailer price war.
The retail market has seen food inflation slow sharply thanks in large part to the raft of promotions and price battles among the multiples, not least in their produce aisles.
Morrisons is offering 50-plus deals a week in its fresh produce section alone.
“Fresh produce in Morrisons is used as the draw card and [Morrisons chief operating officer] Dalton Philips has been putting enormous pressure on the produce department with big meetings at the highest level,” said one supplier to the retailer. “Produce is absolutely key to their offer.” The retailer is offering various “two for” deals although in the past it has shied away from these, as well as half price and “...% extra free” promotions.
According to the British Retail Consortium (BRC)-Nielsen shop price index figures released this week food inflation fell to four per cent in March compared to 4.5 per cent in February. “It’s a clear demonstration of competition in the retail sector keeping costs down for shoppers,” said BRC director general Stephen Robertson.
The proportion of shopping rung through the tills on promotion has reached an all-time high of a staggering 40 per cent.
A spokeswoman for Nielsen explained: “When this figure reached a third we thought that was high, and a year ago it was 35 per cent but now what we are seeing is consumers seeking out deals and controlling their basket size by increasingly shopping online.” .
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