The Courier & Advertiser (Fife Edition)
Co-op ups the ante in funeral price wars with shock price cut
Group aims to stay on top in tough market
The Co-op group is slashing the cost of its funerals and promising to beat rival providers as it invests major firepower into a raging price war engulfing the sector.
In a move that promises to send shockwaves through the sector, the mutual’s funeral division is reducing the cost of its “simple funeral” by £100 to £1,895, and by a further £200 for its 4.7 million members.
The shake-up – which includes a guarantee to beat other providers’ funeral prices – is expected to rock rivals such as Dignity, which offers a similar service for £1,995.
Robert Maclachlan, managing director of Co-op Funeralcare, said: “Funerals are becoming increasingly price sensitive and in the last two years we have seen a huge shift in the number of clients seeking affordable funeral choices. Our new guarantee to beat on price means that families choosing a funeral with the Co-op can be assured that they are receiving a competitively priced funeral, with no compromise on our high standards of care.”
Britain’s funeral market is dominated by Co-op Funeralcare and listed rival Dignity, and the pair have been slugging it out for market dominance.
The Co-op holds a 16% share of the market in the UK and Dignity has around 12%.
But Dignity has come under acute pressure this year and was forced to issue a profit warning after a lower-thanexpected take-up of its “no frills” funeral option, despite slashing prices.
It has also called in management consultants LEK to help lead a revamp to fight off increasing competition.
The Co-op said its measures come off the back of its recent survey of 30,000 people on bereavement, which revealed that as many as four million Britons suffered financial hardship after a death.
They also reflect the fact that more people are selecting its most affordable funeral choices.
Mr Maclachlan added: “The fact that four million Brits have suffered financial hardship after a bereavement is startling.
“As a member-owned organisation, the changes we are making form part of a long-term focus we have on leading the market to further assist the bereaved in tackling funeral affordability.”
“The fact that four million Brits have suffered financial hardship after a bereavement is startling