Price war in the supermarkets
United Kingdom
Monday 12 April 2010
NAD
Britain’s third-largest supermarket, Sainsbury, reported, on March 2010 its lowest sales growth in five years and warned that lower food inflation would drain the wider industry of growth just as rising fuel prices and taxes put pressure on household budgets.
Industry figures suggest that the big four supermarkets, Tesco, Asda, Sainsbury’s and Wm Morrison , have all suffered a decline in sales growth, because food prices are rising less sharply.
Food inflation fell last month to a three-year low, according to the British Retail Consortium. The closer inflation gets to zero, the more retailers must steal share from each other to increase sales.
Source : The Times.