The Co-operative Group might be all about its ethical credentials, but that hasn’t stopped the UK’s cuddliest supermarket wading into the Christmas price war.
The retailer is trumpeting price cuts and savings totalling £200m as the key festive period begins in earnest. The uncharacteristically aggressive move, which includes a ‘triple dividend’ for its several million members on certain products, has Fleet Street all hot under the collar, typified by a sweaty Daily Telegraph.
It adds up the £250m price cuts already announced by Tesco and Asda’s reductions of £150m to argue that these are ‘real cuts’ and not just gimmicks or crafty juggling of prices increased only a few weeks before.
The paper quotes retail analyst Jason Gordon, who notes: “Supermarkets may not be cutting [prices] for altruistic reasons, but there is significant discounting going on, and shoppers' weekly shopping baskets are coming down."
The Times and Financial Times also take a close look.
In today’s other big stories, Mitchells & Butlers shareholder Joe Lewis has reportedly blocked a move to install former Asda kingpin Archie Norman as chairman.
That’s the story in the Guardian, which adds that the pub operator has called in the Takeover Panel to investigate whether Lewis is compromising the board’s ability to act effectively and independently.
The Times says the board will need to find a candidate with experience of the licensed trade if its wants the approval of Lewis. The paper has also now got wind of the call to the Takeover Panel.
And talking of takeovers, the Telegraph has the latest on the Cadbury-Hershey talk as the US confectioner lines up funding for a possible bid to rival Kraft. The Times quotes boss Todd Stitzer saying that Hershey would represent a better cultural fit than Kraft.
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