News

British Supermarket Chain Cuts Prices “Across 400 Staple Products”

Up and down the aisles, shoppers are finding lower prices at Morrisons, a supermarket chain in Britain with nearly 500 stores.

Here's a quote from a Nov. 6 article in The Grocer:

Morrisons' actions to slash prices across hundreds of products has driven the supermarket into annual deflation to retake the position of the leader amongst the big four supermarkets on price inflation.

The Bradford-based supermarket recorded annual deflation of 0.4% in October across more than 12,000 SKUs analysed by the Grocer Price Index (GPI), collated by Edge by Ascential.

This marked a decrease over recent months from inflation of 0.6% in August and flat annual pricing in September. It was only the second time in the past year Morrisons has outperformed rivals in terms of price inflation.

Morrisons cut prices by an average of 23% across 400 staple products in early September. The annual price drops were most pronounced in fruit & veg (--6.2%), meat, fish and poultry (--2.8%) and dairy (--1.7%).

This brings to mind a chart and commentary from Elliott Wave International's May 2020 Global Market Perspective:

Future

[An] imbalance between supply and demand can be rectified only one way: with a massive decline in prices... Dairy farmers in the U.S. state of Vermont are dumping milk, because no one is buying it. One farmer who is sitting on 500 blocks of artisanal cheese will be "giving it away before feeding it to his pigs." (WCAX, 4/9/20) This chart depicts July 2020 futures contracts across 10 different agriculture and energy commodities, where this year's price declines have reached upwards of 40%.