Asda and Morrisons hike prices after private equity takeovers

Morrisons and Asda have hiked prices ahead of their grocery rivals
Morrisons and Asda have hiked prices ahead of their grocery rivals
// Morrisons and Asda prices have increased more dramatically than rivals
// The price of a basket of 18 staples rose 15.3% at Morrisons and 13.6% at Asda compared to just 0.8% at Tesco, and 8.3% across the wider market

Private equity-owned Morrisons and Asda have hiked their prices more dramatically than their supermarket rivals.

The price of a basket of 18 staples has jumped 15.3% to £20.37 at Morrisons and by 13.6% to £18.08 at Asda, according to research firm Assosia.

At Tesco, the same basket cost just 0.8%, and across the wider grocery market it cost 8.3% more on average.

Morrisons was also the most expensive of the big four grocers over the past six weeks in The Grocer 33, a widely-followed survey of industry prices.

The price hikes will prompt questions about the whether the recent private equity takeovers of Morrisons and Asda will leave shoppers out of market amid fears over inflation, particularly in food.

Morrisons was bought by Clayton, Dubilier & Rice (CD&R) in a £7bn takeover late last year. Just last week the CMA deepened its probe into the acquisition to explore whether the deal will result in higher fuel prices on petrol forecourts.

Meanwhile Asda was bought by petrol station tycoons the Issa Brothers and TDR Capital in late 2020 for £6.8bn.

READ MORE: How much more will your shopping cost in 2022?

Inflation has been rapidly growing, up 5.4% in December according to the ONS, the highest level for nearly three decades. Food prices rose 1.3% month on month, which was the highest rate of growth in December since 2012.

Food inflation has been driven by labour shortages, lack of HGV drivers and increasing shipping rates along with some jumps in commodities. However, food writer and anti-poverty activist Jack Monroe has brought this issue to the fore over recent weeks when they claimed supermarket inflation had affected poorer households more.

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  1. Since the two brothers have bought shares of ASDA, its prices have dramatically and unreasonably been going up incessantly, and their price increase is way disproportional with the inflation and any other pretext. I’ve been shopping at ASDA for the past 9 consecutive years, but I’m now going to shift to another market.

  2. I agree with above. Morrisons increases very high and i am rarely in morrisons unless a discount whisky deal is on offer. Very Little chance of being run over with a trolley, few people in. They must think customers dont notice or are simply stupid


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