Morrisons is set to undercut its rivals by up to 11 per cent on fresh produce as it enters the high street with its M local format.
The UK’s number-four supermarket this week opened its first convenience store in Bradford as part of three trial outlets.
Morrisons expects to be between four and 11 per cent cheaper on fresh products than its rivals in convenience by charging its usual prices, or slightly higher, at the M local stores, leaving it ahead of other c-stores that charge a premium in local, convenient stores.
The first store is in Ilkley, Bradford, an affluent area - a deliberate target as Morrisons aims to broaden its demographic.
M local stores will have more than 100 lines of fresh foods including strong fish, meat and bread offers and a salad bar.
One supermarket supplier told FPJ Morrisons has recently “revamped its fresh convenience offer - it is much stronger on bagged salads and stir fries than it was historically”.
He added: “It has implemented dramatic changes in packaging, tiering and recipes and brought its prepared offer up to that of the rest of the mults.”
Commenting on links between Morrisons and a possible £1.5 billion offer for frozen food chain Iceland - which would more than double its store numbers - the source said: “Iceland has the high street locations which would allow Morrisons to gain the access to the convenience market it is lacking.”
Morrisons chief executive Dalton Philips said: "Convenience is one of the fastest growing sectors of the market and developing our offer in this channel is a key part of our growth strategy."
Philips took over the 455-store supermarket last year and has already set out plans to enter new markets.
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