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6th January 2010
Huge supermarket price cuts could threaten independent retailers
A couple of UK supermarkets have implemented their largest price reductions in ten years, it has been revealed.
Asda and Tesco have become embroiled in a price war as they battle to lure in customers following the expensive festive period.
The move could have a detrimental effect on small retailers across the UK who do not have the financial capability to match the superstores' moves.
Furthermore, the chain stores are also refraining from implementing the VAT rise on a number of products, incurring the costs themselves rather than passing it on to the consumer – another initiative many independent stores will be unable to match.
Mark Guymer, from Moneysupermarket.com, said that the price drops were a reaction to the state of the market.
He told the Daily Telegraph: "Shops are nervous and [these cuts are] part of a strategy to grow their customer base during what they anticipate will be a tough January."
A number of electrical goods are included in the widespread price reductions.
© 2010
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