LONDON: British supermarkets are slashing prices ahead of Christmas, spurred by competition from German-owned discounters, benefitting customers of all tastes.
Sales events dubbed "Black Friday", "Cyber Monday" and "Manic Monday" -- imported from the United States -- surged in popularity across Britain this year as retailers fight for market share both online and in stores.
These provided fresh price battles between British supermarkets as they seek to halt the advance of German discounters Lidl and Aldi and win back belt-tightening consumers.
As a result, Britain's 110 billion-pound ($172 billion, 139 billion-euro) annual food sales market fell this autumn for the first time in at least 20 years. Sliding food prices have also contributed a drop in British inflation to 12-year lows.
"Mainstream retailers cutting their prices have been the direct result of the pressure brought about by Aldi and Lidl," said Fraser McKevitt, head of consumer insight and retail at Kantar Worldpanel.
"Many retailers see lower prices as a way to try and gain back lost market share."
Launched in Britain in the 1990s, the German discounters have eaten away at the dominance of the four major national supermarket chains -- Asda, Morrisons, Sainsbury's and market-leader Tesco -- a trend deepened in recent years with the erosion of household buying power.
"The UK supermarket industry has experienced radical change over the past five years with consumers becoming much more focused on value for money," said Davy Research analyst John Stokes.
Tesco, the world's fifth biggest supermarket group by sales according to Deloitte, has seen its share of the grocery business steadily decline over recent years in main market Britain.
It stood at 29.1 percent at the end of 2014, down from 31.5 percent at the start of the financial crisis in 2008, according to the latest study by Kantar Worldpanel published Tuesday.
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