“Supermarket price war would kill profits”, writes The Times (£) this morning, warning that “the front line in the fight for food shoppers is about to get bloody”.

The Times writes: “Morrisons fired the first salvo by cutting the price of more than 1,000 products by an average of 18 per cent before the critical back-to-school period. Asda is expected to make even deeper cuts, which could prompt retaliation from Tesco and Sainsbury. While consumers might enjoy eye-watering discounts, analysts say a price war could wipe out industry profits.”

A record £9bn was spent on contactless cards in the first six months as popularity soars. The £9.27bn spend in that period was more than total spend of £7.75bn for whole of 2015 (The Financial Times £). Last month, nearly one in five purchases made on a card used contactless readers, up from 7% a year ago. (The Telegraph)

The sharp drop in the pound has attracted tourists to the UK on shopping sprees, driving a jump in tax-free spending by overseas visitors, according to industry figures (The Guardian). The fall in sterling since the Brexit vote in June, and fears of terrorism abroad, has also meant more British families have chosen to holiday at home. (The Daily Mail)

BHS’s 88-year run on the High Street will come to an end this week when the final stores close their doors. The last 35 BHS shops are expected to close after the firm went into administration in April. (The Daily Mail)

Lactalis, Europe’s largest dairy group by sales, is under pressure from French farmers to increase the price it pays for milk, having been accused of taking advantage of producers already hit by an oversupply of milk on the world market. (The Financial Times £)

Turnover at Farmfoods slid more than 14 per cent to £728.9 million last year as the pressures in the grocery sector turned up the heat on the frozen food specialist. (The Times £)

The Times (£) has an interview with Reggae Reggae Sauce founder Levi Roots about how his appearance on Dragon’s Den was the launchpad for his Caribbean food venture.

In wider retail, Sports Direct is facing new questions over its governance weeks before what is expected to be a stormy shareholder meeting after it was revealed that the retailer was making hundreds of thousands of pounds in undisclosed payments to the older brother of its billionaire founder (The Times £). Several investors in Sports Direct have signalled they are likely to vote against its chairman (The Financial Times £), led by influential lobby group Pirc (The Daily Mail). The Financial Reporting Council is understood to be looking into the agreement with John Ashley’s Barlin Ltd (The Guardian).

Topics