Morrisons raised its prices more than any other major UK supermaket last year, causing shoppers to switch to other grocery retailers, new research shows.
According to reporting by This is Money, credit rating agency Moody’s said Morrisons had “rapidly” hiked prices in June and was the only supermarket giant to raise prices faster than Lidl and Aldi.
As a result, sales for Morrisons dropped by 6.4% year on year for the second quarter of 2022 and in September, it was overtaken as the UK’s fourth largest grocer by Aldi.
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Prior to private equity firm Clayton, Dublier & Rice (CD&R)’s takeover of Morrisons in 2021, it held 10% market share.
However due to a £6 billion debt pile with rising interest rates, as well as the added pressures of increasing inflation levels, the supermarket hiked its prices and now has 9.1% market share, having lost customers to rivals.
However, last week Morrisons slashed prices across 50% of its Savers range to help shoppers save following Christmas expenses and as the cost-of-living crisis continues.
Having investsed over £16 million to make the cuts, it will be offering reduced prices on 130 products including fresh and frozen food, as well as cupboard essentials and household items.
