Waitrose managing director Mark Price has vowed to add a further £20 million of price cuts this year, matching roll-backs in the first half.

Price said that Waitrose was now in “touching distance” of rival Sainsbury’s on the price of branded products. “I am very confident that we are more price competitive at Waitrose than we have ever been before,” he said.

The grocery sector has been embroiled in a bitter price war this summer, led by Tesco and Asda. This week, Asda unveiled its biggest Christmas price cuts of£150 million, featuring 2,500 price roll-backs on festive food, George clothing, toys, gifts and electrical goods.

Waitrose delivered£20 million of price cuts in the six months to July 28 and plans to continue investing at that level over the next six months.

Price said: “On branded lines we want to make sure we absolutely remain competitive with the market. When our competitors announce they are investing£100 million to£150 million and you look at their market share, £20 million is substantial for a company with a 4 per cent market share.”

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