Co-op Food will spend £100m lowering the prices of hundreds of staple products in response to growing pressure from discount stores.
Prices of bread, milk, eggs, chicken, bacon and bananas will be cut across 2,800 stores and positioned in-store as “Fair & Square prices.”
The changes will be supported by a high-profile TV advertising campaign and other promotional activity.
The retailer laid out its aim to be the UK’s best community retailer and will self-fund its food strategy which will be supported by cost reductions made by the business.
Steve Murrells, chief executive of retail, who revealed the figure on his Twitter page, said its plans were “challenging yet achievable” and said the co-operative food is changing. “We have a clear ambition to be the UK’s best community retailer, delivering deliciously food conveniently,” he said.
The retailer asked the public to ‘help shape its future’ in February after it admitted it had “lost touch” with its customers and appears to have taken action on feedback.
It also announced plans to open over 100 UK stores this year despite the worst year in the group’s history having posted a £2.5bn loss for 2013.