FRESH CUTS worth over £160m have been unveiled by Tesco and Asda in an effort to put rivals under pressure.
The two retailers together account for a third of food shopping in the UK, and are fighting to prevent troubled Sainsbury‘s and Morrisons from regaining market share.
A spokeswoman for Asda, which is investing £100m in the cuts over the next three months, told FARMERS WEEKLY she “didn’t believe” that primary agriculture would be affected.
“There‘s no doubt that a price battle is raging among the retailers for supremacy. These cuts come off our bottom line, but we sell more so everyone gains,” she said.
“However, we benchmark on fresh produce and will continue to examine pricing very closely.”
A Tesco spokesman echoed the sentiment, saying the £67m worth of cuts were part of a virtuous circle designed to boost sales.
“They are not funded by putting pressure on suppliers and producers, who actually benefit from them,” he said.
The retailer is focusing its campaign on value products, including baking potatoes, red onions and some yoghurt and ice cream lines.