The price war announced by Morrisons CEO, Dalton Philips, two weeks ago appears to have got off to a slow start. This has lead to more than one rival supermarket to question whether this is anything more than the regular “cut and thrust” of supermarket price & promotion antics.

Philips promised to run fewer but more targeted promotions. The latest Grocer 33 pricing survey (pxx) actually shows an increase in the number of promotions but not much in the way of the deeper discounts Philips was promising on targeted lines. There was also little sign of an impending price war in the featured space promotions of Morrisons in the four weeks up to 16 March (the Morrisons announcement was on 13 March).

We provided data to The Grocer in order to identify the number of monthly instore promotions. Our analysis revealed that these stayed flat

Assosia’s MD, Kay Staniland, belivels that “this is an indication they are taking the price war seriously.”

4 weeks to 16th March 2014
Number of offers19187982219270422481173
Number last month18737962216269322281172
% change m-o-m2.40%0.25%0.14%0.41%0.90%0.09%
Number last year16889802116245222391180
% change on last year13.63%-18.57%4.87%10.28%0.40%-0.59%
Average start price (£)£3.41£3.95£4.55£5.94£4.01£6.59
Typical Average £ saving£1.36£1.60£1.85£2.34£1.69£2.22
Typical Average % saving27.64%34.65%35.14%31.10%33.04%31.38%
Average % saving last month27.57%38.07%36.50%31.36%33.42%29.47%
% savings change m-o-m0.25%-8.99%-3.73%-0.81%-1.12%6.47%
Average % saving last year28.13%36.02%35.45%34.89%31.51%30.01%
% savings change on last year-1.74%-3.78%-0.87%-10.86%4.85%4.56%
Current Brand:own-label ratio84:1674:2688:1278:2280:2081:19
Ratio 1 year ago85:1578:2286:1474:2682:1881:19
Average % saving (branded)28.88%37.45%36.33%32.32%35.08%31.41%
Average % saving (o/l)20.29%26.72%26.33%26.74%25.04%31.25%

Published in The Grocer, 28 March 2014

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