From The Sunday Times
November 8, 2009
Supermarkets launch massive price Christmas war
Jenny Davey

Britain's supermarket chains have launched the biggest discounting bonanza in years for this festive season, with toys, DVD boxed sets, Christmas decorations, clothes and electricals all on sale more than a month and a half before the big day.

The discounting frenzy comes as the big four grocers slug it out to capture entertainment and toy sales following the collapse of Woolworths and Zavvi. The price cuts — including sales of supermarket clothing ranges — are striking fear into the hearts of high-street retail bosses who worry the supermarkets are using their buying power and low cost base to offer extravagant deals.

“There seems to be bigger discounting than ever — it’s vicious out there,” said one leading retail executive.

“You have to fight your corner or people won’t shop with you. All the retailers are getting dragged into discounting — there isn’t any choice.”
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David Potts, retail director at Tesco, admitted the sector was over-promoted but hinted that shoppers were being introduced to special offers by widespread discounting in the market, leaving companies with little choice but to take part.
The full piece at The Times online.