U.K: Morrisons To Slash Price Of 'Essentials' By 19%

Morrisons has announced a wave of store closures in recent months

The supermarket is pledging to discount selected products for at least three months, as the threat of discount rivals looms large.

Morrisons has announced plans to cut the cost of more than 1,000 "staple" products - in a move likely to add fuel to the ongoing supermarket price war.

The UK's fourth-largest grocer will slash the prices of many items, including fruit and vegetables, by an average of 19%.

Once selected products are discounted, they will remain that way for at least three months.

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Along with Tesco, Asda and Sainsbury's, Morrisons has found it difficult to fend off competition from discount retailers such as Lidl and Aldi.

David Potts, chief executive of the Bradford-based chain, said: "We continue to listen carefully to customers and they have told us they want lower prices, particularly on fresh food and everyday essentials."

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The move follows a surprise increase in like-for-like sales at Morrisons over Christmas, with the supermarket beating forecasts and posting a 0.2% rise over the nine weeks to 9 January.

Even though its performance beat forecasts, Morrisons has faced some difficult decisions in recent months - with Mr Potts confirming the chain would close a further seven stores on the same day that trading update was released, placing 680 jobs at risk.

That was on top of 11 superstores which were earmarked for closure last September, affecting about 900 jobs, and the sale of 140 convenience stores so the retailer could focus on its larger sites.

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Also in January, Asda unveiled plans to invest a further £500m on price cuts in its stores, with chief executive of the Walmart-owned brand warning "radical action" was needed to win back customers.

(Sky)