Morrisons share price: Group cuts prices in latest grocery war salvo

Wm Morrison Supermarkets (LON:MRW) has moved to cut prices on nearly thousand products in the latest salvo in the ongoing supermarket war, media have reported. The news comes as the blue-chip group prepares to update investors on its performance tomorrow.

Morrisons’ share price has jumped in London this morning, having gained 1.74 percent to 219.55p as of 09:02 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.03 percent lower at 6,835.25 points. The group’s shares have lost less than one percent of their value over the past year, as compared with about an 11.5-percent dip in the Footsie.

Morrisons slashes prices

Reuters reported today that Morrisons was cutting the prices of 935 products, including tinned tomatoes, cereals, ready meals and multivitamins, by an average of 20 percent. The Bradford-based supermarket chain said that the cuts would typically be held for a minimum of twelve weeks.

The Guardian meanwhile quoted Morrisons marketing director Andy Atkinson as commenting that the company was “listening to customers who are telling us that their budgets will be stretched in January, so we are cutting every penny we can on the essentials that will help them feed their families”.

Morrisons is scheduled to post its Christmas trading statement tomorrow and the Guardian reports that the grocer is forecast to post a 0.5-percent rise in retail sales.

Analysts on supermarket

The 14 analysts offering 12-month price targets for Morrisons for the Financial Times have a median target of 245.00p on the shares, with a high estimate of 290.00p and a low estimate of 195.00p. As of January 5, the consensus forecast amongst 19 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.

As of 09:09 GMT, Monday, 07 January, Wm. Morrison Supermarkets plc share price is 219.55p.