How supermarket price war could affect weekly shop

Supermarkets are said to be gearing up for a "price war" as they prepare to take a hit to their profits by lowering grocery prices to win over customers.

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Asda announced in March that it expected lower profits this year as it worked towards its goal of making its prices 5-10% cheaper than its rivals, while Tesco chief executive Ken Murphy said this month that the chain is expecting profits to fall by up to £400 million next year due to "intensification" of competition.

Last week, Sainsbury's also said it would cut prices to keep up with its competitors, having invested £1 billion into improving its pricing.

Meanwhile, Morrisons is closing 17 of its smaller-sized Morrisons Daily stores in a bid to "reinvigorate" its business and focus investment "into the areas that customers really value".