ASDA/Morrisons - comment
Morrisons’ comment that competition remains significant but rational is supported by the latest data from The Grocer. ALDI/Lidl are the primary targets of ASDA's price cuts, but they are not included in this comparison (fewer SKUs make direct comparisons difficult). Whilst Morrisons’ headline basket showed increased prices, with multi-buy price support, it was cheaper than ASDA, whilst Tesco is following ASDA as expected. Margins are going to take a hit across the board, as whilst inflation in food prices is rising, the average basket price fell 0.8% sequentially.