Woolworths downgrade raises UK-style price war fears

More than $8 billion has been wiped off the market value of food and grocery retailers in the past three trading days amid growing fears of a British-style price war after Woolworths’ latest profit downgrade last week.
Analysts and investors believe Woolworths’ decision to accelerate its investment into grocery prices and service could trigger a more aggressive response from Coles, Metcash and Aldi, kicking off a full-blown price war that would damage margins throughout the sector. Sydney Morning Herald – Read more…