Britain's grocery sector is about to see a wave of aggressive price cuts by retailers eager to boost their market share, industry consultants Verdict Research said on Tuesday, Reuters reports. Verdict's report said the last nine months had seen a "marked relaxation in the intensity of competition in the UK grocery sector", and attributed this to the fact that supermarket chain Asda was integrating a new management team. Verdict said Asda, owned by American retailer Wal-Mart Stores Inc, would now lead the way in introducing price cuts to help win market share and deliver higher profits. The consultants added that price wars between leading grocery retailers such as Asda, Tesco, Safeway and Sainsbury could come as early as the Christmas and New Year holiday period. Verdict added that the amount of money Britons spend in groceries and supermarkets will have risen to 119 billion pounds ($172 billion) by 2006, from 96 billion pounds this year. Verdict also said it rated Tesco as the best company operating in the UK retailing sector at the moment. The company has recently expanded, notably in eastern Europe and Asia, and Verdict said Tesco was helped by its "growing skill as a hypermarket operator". The report added that Waitrose and Marks & Spencer remained strong in the UK grocery sector, but Sainsbury and Safeway would be tested in a more competitive pricing environment.
