SOMERFIELD CAMPAIGN TO SPUR U.K. PRICE WAR?

BRISTOL, England (FNS) -- Somerfield here has stepped up a discount pricing campaign, sparking fears of another price war among U.K. food retailers.

called Price Check. Most of the other retailers followed suit, putting pressure on margins and shifting customer focus from service to price, where it remains.

In the current expansion of Price Check, Somerfield has extended the program to 1,000 products from the previous 800. While analysts said the new program is unlikely to spur a major price war, they expect J. Sainsbury plc, Tesco plc, Safeway and ASDA plc to launch fall price initiatives of their own over the next few weeks.