Supermarket giant Morrisons has announced that it will be decreasing prices in the wake of poor financial results.
The chain will cut prices on thousands of its products in a bid to lure back some of the customers who have turned their back on the supermarket.
Morrisons published an undeniably poor balance sheet in March, amid speculation that it was losing market share to discount stores like Aldi and Lidl.
It is considered as one of the 'big four' supermarkets, along with Tesco, Asda and Sainsbury's. However, the trio of competitors were far less affected by Aldi and Lidl's change in fortunes.
The move to cut prices comes amid the company's boss Dalton Philips reiterating that Morrisons wishes to position itself as a value-based brand, offering customers the best quality produce for the lowest possible price.
He was keen to stress that the intention to lower prices should not be seen as a panic action or overly reactionary.
Mr Philips said: "I know this will be easy to characterise as a price war or a fight-back against the discounters.
"But this is not a temporary skirmish or a response to just one channel. It is about firmly re-establishing our credentials as a value-led grocer with a passion for food in a rapidly changing market."
The company has revealed that around 1,200 products will have their prices slashed by an estimated 17 per cent. Between 35 and 40 per cent of the products involved are categorised as 'key products', meaning they can be considered as the bare essentials that customers are likely to purchase on regular basis.
This is being touted as the most fierce area of price competition, with supermarkets attempting to offer customers who are being pushed by the financial crisis a more affordable way to live by cutting how much they must pay for own brand products.
Although the financial results posted by Morrisons were far worse than those of Tesco, the latter is also investing £200 million in a bid to bring down prices and hold on to profits that are dwindling by maintaining its huge customer base.