Wm Morrison has stepped up the fight against Aldi and Lidl
CEO says Move was a “major milestone” for Britain’s fourth-biggest supermarket chain by market share
London: UK’s Wm Morrison has stepped up the fight against Aldi and Lidl, introducing a new loyalty card and a price-matching scheme that pledges to be cheaper than the German discounters or refund customers.
Dalton Philips, chief executive of Morrison, said the “game-changing” scheme, using its Match & More card, was the first of its kind to equal the hard discounters, which have been taking sales away from Britain’s big supermarkets.
“We will be the only retailer in the world to do this,” he said. “This is a real game-changer for our customers and a powerful new weapon to help Morrison become fit for the future.”
Philips said the move was a “major milestone” for Britain’s fourth-biggest supermarket chain by market share.
But he insisted: “We are not and will not become a discounter. Match & More is about neutralising on price so that the rest of our offer will really shine through. There are so many areas where discounters will never be able to compete with Morrison.”
He would not say how much the scheme, which also pledges to match the prices of the other “big four” supermarkets - Tesco, Asda and J Sainsbury - would cost Morrison.
Philips said it was part of the £1 billion that the supermarket chain had pledged towards cutting its prices over the next three years. The cost was a “major part” of the £300 million earmarked for this year.
Earlier this week Aldi claimed that its average shopping basket was £6-£7 cheaper than at Asda and Tesco. Aldi and Lidl responded to the move by saying they would not be beaten on price.
Clive Black, analyst at Shore Capital said Aldi and Lidl’s “free lunch” was coming to an end, but he had considerable doubts about Morrison’s scheme, saying he would prefer Morrison to cut prices across the board.
The Match & More card automatically checks the prices of products against those of Aldi, Lidl, Tesco, Asda and Sainsbury. If rivals’ prices are lower, Morrison will give customers the full difference via points on their card.
Once they have accumulated 5,000 points, they will receive a £5 voucher.
Customers will be able to save their vouchers over a year to use when they spend large amounts. Shoppers will also be able to earn extra points on featured products and when they buy fuel.
Philips said products in Morrison’s core, mid-tier range, rather than its most basic range, would be compared with those of Aldi and Lidl.
— Financial Times
