Londis retailers are set to enjoy higher margins on milk, bread and sugar.

Londis's owner Musgrave Retail Partners GB has introduced milk into its depots, a move that will significantly improve margins and save retailers an estimated £1m, the company said. It has also cut the price of a two-litre bottle of standard fresh milk delivered direct to store.

Lower prices on sugar and bread will also be available through Musgrave's three depots in South Elmsall, Andover and Thamesmead for the next few months.

"This is another demonstration of how we are strengthening our offer to Londis retailers," said managing director Phil Smith.

Earlier this month, Smith told The Grocer that Musgrave GB planned to sharpen its promotional activity and own-label ranges this year, to give Budgens and Londis retailers and customers a helping hand through the recession.