By Jonathan Davies
Morrisons has pledged to match the prices of Aldi and Lidl in a new twist to the supermarket price war.
The troubled supermarket will match their prices of unbranded and branded products against Tesco, Asda and Sainsbury's, as well as Aldi and Lidl. It's the first time one of the 'big four' supermarkets have promised to match the prices of Aldi and Lidl.
Morrisons will match prices through a scheme called "Match & More". Shoppers will be given a card to swipe at the checkout. If the shop would have been cheaper at Aldi or Lidl, points will be added to the car. Once shoppers reach 5000 points, they will be given a £5 voucher.
Dalton Philips, Morrisons chief executive, described the move as a "gamechanger".
It is part of a £1bn investment into prices. The scheme is likely to cost around £300m and will result in Morrisons' profits halving.
The 'big four' have become embroiled in a price war over the past 12 months as budget retailers like Aldi and Lidl increase their market share.
For the first time in a generation, the likes of Tesco, Asda, Sainsbury's and Morrisons are losing their market share and sales are dropping. Meanwhile Aldi and Lidl are experiencing double-digit growth in sales.
Mr Philips said: "I am confident this is a gamechanger for customers.
"We are not and will not become a discounter. There are so many areas where the discounters will not be able to compete with us.
"We simply offer so much more than they do. The discounters are growing fast, but they have one thing - price."
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