With UK household finances continually being squeezed and consumer confidence at an all-time low, all grocery retailers in the UK are focusing on price.  

Morrisons has only really had a key focus on this since October, when it started to become more competitive  across a range of items – the quick succession of further cuts is likely them playing catch up. 

Supermarkets operate on very low margins, typically around three percent, so savings passed on to customers means they need to look at how they can make savings elsewhere. For instance, we’ve already seen some retailers reducing staff numbers. 

We’ve also already seen retailers reduce their ranges, enabling them to focus on bigger price reductions across a smaller range of products.