Dignity sees shares drop as funeral war heats up.
Shares in funeral provider Dignity crashed yesterday after rival Co-op fired the latest salvo in the sector’s price war.
Co-op Funeralcare said over the weekend it 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 on a like-for-like basis – knocked Dignity, which offers a similar service for £1,995.
Charles Hall, analyst at Peel Hunt, believes that if Dignity tries to respond by itself lowering prices, it could wipe £1.5m off its profits.
He added: “The key concern post Dignity’s announcement of price reductions in January to match the Co-op on Simple funerals was that the Co-op would respond – it now has with a £100 price reduction.”
Britain’s funeral market is dominated by Co-op Funeralcare and listed rival Dignity, which have been slugging it out for market dominance.