The Telegraph speculates whether Britain’s supermarkets could be about to merge after the Ahold and Delhaize deal sparked speculation that UK grocers could team up in the face of falling sales.Pointing to a possible Sainsbury’s/Morrisons tie-up, the paper writes: “The chances of a deal getting the green light has been boosted by the launch of a new competition regulator in the shape of the Competition and Markets Authority, the rise of Aldi and Lidl, and the mega-deals that have been approved in other sectors. (The Telegraph)

Not only is the vicious supermarket price war hurting the big four supermarkets — Tesco, Asda, J Sainsbury and Wm Morrison — but the collateral damage is spreading upmarket and hitting Waitrose and M&S. (The Financial Times £).

Tesco chief executive Dave Lewis will face shareholders for the first time at the retailer’s annual meeting today as they look for answers in a year that saw record losses of £6.4bn and an accounting scandal. (The Telegraph)

A bidding war for Tesco’s South Korean division is heating up, with more than eight bidders submitting preliminary offers in a sale that could bring in more than $6bn. Orion Corporation, a South Korean food maker whose snacks include a Choco-Pie delicacy, is thought to have made an offer alongside private equity groups including CVC Capital Partners, Carlyle Group, TPG, Goldman Sachs Principal Investment Area, and Affinity Equity Partners. (The Times £)

The FT’s Lex column argues that the “enduring appeal” of US ‘variety’ stores should settle nerves around the UK’s pound stores. “The experience of the US, where the “variety store” sector has a long history, suggests it is premature to write off the sector as a passing fad.” (The Financial Times £)

Shoppers turned a little more frugal this month as they cut back on groceries after a bumper May, according to an industry survey. June retail sales growth fizzled out, having hit a five-month high the previous month, although the figure remained above average for the time of year. The CBI’s retail sales balance fell to +29 in June from +51 in May, with the slowdown driven mostly by the grocery sector. (The Times £)

Sainsbury’s has cut the price of one and two pints of milk, matching those of the discounters Aldi and Lidl, in a further sign of an intensifying supermarket price war. The price of two pints of milk has gone from 89p to 75p in large supermarkets, while the cost of one pint has been cut from 49p to 45p. (The Guardian)

Britain’s grocery price war claimed another casualty as Nisa, the convenience store chain, reported a £3m loss. The mutual, which buys and supplies goods to more than 2,500 independent shops, had forecast a £11m profit for the year ended March 31 2015. (The Financial Times £)

Whole Foods has been accused of routinely overcharging its customers in the US. New York’s Department of Consumer Affairs alleges that the upmarket grocery store frequently labels its foods with inaccurate weights, meaning that customers are at risk of paying more than they should. (The Telegraph)

The boss of discount chain B&M has been handed a huge pay rise after floating the company on the London Stock Exchange. Chief executive Simon Arora, who bought the bargain-basement bazaar now known as the ‘new Woolworths’ a decade ago, will earn a basic salary of £575k this year compared to the £144k he earned last year. (The Daily Mail)

Oddbins is understood to have been saying it with wine and love letters – in an attempt to poach up to 30 key staff from rival Naked Wines. The off-licence chain, which was bought out of administration by Raj Chatha’s European Food Brokers in 2011, is thought to be attempting to build up its social marketing and e-commerce teams to help it fight back against Naked. (The Guardian)