Who Will Win The Price War In Uk?

The state of the financial world has pushed many retailers to start price wars in order to win more customers, make more sales and increase the margins. When a competitor cuts its prices then the temptation is to start cutting yours. This sort of behaviour will lead you though to a price war. This is exactly what is happening on today’s UK market with some of the biggest supermarket retailers being trapped in the war of prices.

It seems that the UK’s leading supermarkets have intensified their attacks on the prices, however it is not clear who will be the ones that will actually win from all of this. The Big Price Drop, the Brand Match and other similar programs that focus solely on cutting prices will not help increase margins and in the long run there are not beneficial for the customers also. When the price drops on various products for a longer period then other items will have an increased price. It is not possible for the retailers to sustain such price cuts without falling back on a safety net.

The race for customer’s cash has become fierce since the economy is not recovering, the wages are still frozen and the high inflation has determined people to be more careful with how much they spend. Households are facing the worst income freeze in many years which has determined lots of family members to shop less and be less wasteful. The utility bills, the fuel price and the high inflation rates have determined the top UK retailers to engage in what seems by now, a lost price war.

In the long run such a war won’t bring profit but it will actually diminish it. Retailers seem to have lost even more money because of the India summer that Britain has enjoyed for the last months. Shoppers have preferred to stay at home or go for walks rather than spend their time in malls and stores. Customers are struck by great difficulties this is why retailers are fighting nail and tooth to get the best prices on the market.

When it comes to winning the battle of the prices we can’t be sure that there will actually be a winner. The supermarkets have not gained in profit margins, people are paying less for some products but they still have to pay a lot for other necessary item. It best thing that we could do is just be careful what we buy and where we buy it from!

By: JacquelineBrewster

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