Grocers Waitrose and Co-op slash food prices on own-labels products as Christmas approaches

22 Oct 2020 --- UK retailers Waitrose and Co-op have revealed their plans to reduce prices on own-label products in the run-up to Christmas. The news is expected to be well-received by many this year, with the coronavirus pandemic financially burdening the British economy.

Waitrose is lowering the prices of over 200 of its most popular own-label products by an average of more than 15 percent. 

The price cuts will apply across a range of everyday items, from meat to fresh fruit and vegetables, as well as cleaning products.

Meanwhile, Co-op is investing £50 million (US$65.9 million) to lower prices on 300 of its branded and own-brand products while also launching a value range.

Waitrose is cutting the cost of hundreds of products to give affordable quality to customers.At-home consumption rises 
The cuts at Waitrose follow the John Lewis Partnership’s Plan, announced last week, which pledged to give customers affordable quality. 

Around half the prices being reduced will be from the Essential Waitrose range which has seen a sales uplift of nearly 10 percent during the lockdown. 

They include fresh and prepared chicken, which is 100 percent British and from higher welfare farms, and pork from outdoor bred pigs.

“This year has been incredibly challenging for consumers and we know times are tough for many, so we’re reducing prices to provide our customers with great value on the items they buy most,” says James Bailey, executive director at Waitrose.

“Value is uppermost in the minds of shoppers and offering good, honest prices and fairly sourced products is important to help shoppers balance their budgets,” adds Jo Whitfield, Co-op Food chief executive. 

COVID-19 accelerates economic fallout
In March, the lockdown tipped the UK economy into recession and triggered panic buying in many large food stores, which were forced to limit the number of items people could buy.

In April, FoodIngredientsFirst reported that British consumers were facing inflated food prices for ambient and fresh products, with the latest retail data revealing these have peaked since last June.Co-op is investing £50 million (US$65.9 million) to lower prices on 300 of its branded and own-brand products. 

UK retail sales have declined 4.3 percent over five weeks during the height of the first wave of the coronavirus crisis, according to the British Retail Consortium (BRC)-KPMG Retail Sales Monitor for March 2020, which marked a historic low. 

This was the sharpest decline since 1995, as the UK government enforced lockdown measures. However, the initial period of lockdown and quarantine measures led to an “unprecedented surge” in demand for food. 

Unemployment is rising in the UK, with many more jobs on the line after the government’s furlough scheme ends at the end of this month. 

Readers may visit our new daily news feed for more coronavirus-related stories and information, entitled COVID-19 updates for relevant insights needed to guide your business through this challenging period. 

Edited by Elizabeth Green