Tesco and Morrisons have opened 2026 with wide-ranging price reductions, signalling a renewed push on value across UK supermarkets as competition on everyday pricing intensifies at the start of the year.
Both retailers confirmed cuts on thousands of products in early January, covering branded groceries, fresh food, and household essentials. The moves underline how price positioning remains a central battleground for grocery stores in the UK, particularly as shoppers enter the year with continued pressure on household budgets.
Tesco said it has reduced prices on more than 3,000 branded products, extending its existing value commitments across a broader range of well-known names. The retailer described the scale of the move as a significant expansion of its approach to consistently low pricing, building on its Aldi Price Match range and long-running Clubcard Prices programme.
The latest cuts focus on high-visibility branded lines that feature frequently in weekly shops, reinforcing Tesco’s strategy of anchoring value perception on products customers recognise and repurchase regularly. Combined with existing schemes, the retailer now has tens of thousands of lines covered by some form of price support.
Morrisons Extends Price Cuts Across Fresh And Everyday Categories
Morrisons has also launched a major round of price reductions, confirming cuts on more than 2,500 products across stores nationwide and online.
The reductions span fresh fruit and vegetables, meat and fish, cupboard staples, freezer items, and household essentials. Fresh food features prominently, reflecting Morrisons’ continued use of produce and fresh categories as key traffic drivers rather than short-term promotional hooks.
By extending price investment across both own-label and selected branded products, Morrisons is positioning affordability as a full-basket proposition rather than a narrow set of headline deals.
What The Price Moves Signal For UK Grocery In 2026
The scale and timing of the announcements point to a broader early-year reset in pricing strategy across the UK grocery market. January remains a critical period for reinforcing value credentials, and the depth of these cuts suggests retailers are prioritising price trust over short-term margin recovery.
For suppliers, the renewed focus on everyday price reductions signals continued pressure on cost structures, particularly in branded categories where shopper recognition is strongest. At the same time, the inclusion of fresh food underlines how core categories remain central to competitive positioning as retailers fight to protect volumes and loyalty.
As 2026 begins, Tesco and Morrisons’ moves are likely to influence pricing behaviour across the wider supermarket landscape, with competitors closely watching how sustained price investment shapes volumes, loyalty, and market share in the months ahead.
Editor’s note
This article is based solely on official statements and publicly released information from Tesco and Morrisons regarding their January 2026 price reduction announcements. No additional estimates, commentary, or external data have been added.
