Boots is Safeway price war target

SAFEWAY has raised the pressure on Boots with a price campaign on health and beauty products. The move comes as Boots braces itself for a battle with Asda on health and beauty ranges now that Asda is owned by US giant Wal-Mart.

Safeway will cut the price of over 700 products. Colgate Freshstripe toothpaste will sell at pounds 1.85 compared to pounds 2.05 in Boots; Head & Shoulders 2-in-1 shampoo will sell at pounds 3.69 compared with pounds 4.99 in Boots.

The cuts, part of Safeway's pounds 30m Price Cut '99 campaign, will be permanent. Toiletries are an increasingly price-competitive market with the major supermarkets battling Boots and Superdrug for market share.

Safeway will also sell cut-price Amstrad televisions. It will begin stocking a range of Fidelity branded models at 221 branches after a successful trial. A 28-inch widescreen Nicam set with Fastex will cost pounds 349.99, Safeway said. The agreement covers the autumn and winter season. The deal is part of Amstrad's attempt to regain its reputation for innovative, low-priced goods.

Shares in Safeway climbed 5p to 239p. Amstrad rose 2p to 91p.