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Grocery chain cuts prices on 400 staples after supplier deal
Bread, eggs and pasta will cost up to 9% less from Monday. Smaller grocers say they cannot follow.
Economics editor
4 min read
New price labels went up overnight in 600 stores.
The country’s second-largest grocery chain will cut prices on about 400 everyday items from Monday, after agreeing a three-year contract with its main dairy and bakery suppliers.
The cuts range from 3% to 9% and cover most of what a typical household buys every week.
Who pays for it
The chain says longer contracts let suppliers plan production and lower their costs. Farmers’ groups say the savings will come from them in the end.
A three-year price sounds safe until feed costs move in the second year.
Independent grocers buy in smaller volumes and on shorter terms. Several told us they will lose regular customers on the items that bring people into the shop.
What to watch
The competition authority has asked for the contract terms. Rival chains usually answer within a fortnight.
Tomasz Wren
Economics editor
Tomasz writes about money, work and why the numbers rarely tell the whole story.
