Aldi and Lidl have responded to the proposed Sainsbury’s-Asda merger by vowing to keep their prices lower than rivals.

A key benefit from the deal outlined by Sainsbury’s Chief Executive Mike Coupe last week was that the enlarged group’s increased buying power will allow it to reduce prices on everyday items by 10% in the hope that it can win back shoppers from the discounters.

In response, Aldi and Lidl have both stated that they will continue to remain the cheapest supermarkets in the UK, suggesting they will undercut any price reductions implemented by the new Sainsbury’s-Asda business.

Speaking to the Press Association, an Aldi spokesperson said: “We will never be beaten on price and are absolutely committed to maintaining the significant price gap between Aldi and our competitors.”

Meanwhile, Lidl said its global buying power and simple operating model provided it with “unparalleled resilience” when compared with rivals and that its customers “can be assured that we cannot be beaten on price.”

A Sainsbury’s spokesperson responded by saying: “We welcome competition and see this as more good news for British households.”

Latest grocery market share figures released last week by Kantar Worldpanel highlighted the reasoning behind Sainsbury’s and Asda’s proposed merger with both chains continuing to struggle for growth.  In contrast, Lidl and Aldi remained the UK’s fastest-growing supermarkets and continued to gain market share from their larger rivals.