Dig­nity sees shares drop as fu­neral war heats up.

Yorkshire Post - Business - - FRONT PAGE -

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.

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