While the big four have lost in Christmas sales, discounters Aldi and Lidl gained over the festive period.
The move is aimed at battling discount retailers like Aldi and Lidl.
UK retail investment: Warm winter weather has been bad news for clothing stores over Christmas.
Department store's chairman also commented on Sainsbury's offer for the owner of Argos.
London's FTSE 100 recovered from a poor start to 2016 and gained ground with miners buoyed by upbeat data.
Sainsbury's shares plunged on the news of the reportedly 'hostile' rejection of the offer.
The price of diesel has fallen to around two pence below the price of petrol, which is usually cheaper.
Profits at Morrisons have taken a beating recently.
Sainsbury's reported that like-for-like sales were down by 1.6%, while underlying profits fell by almost 18% to £308m.
Britain's other three big supermarkets namely, TESCO, Morrision and Walmart have also been experiencing declining sales.
Rugby World Cup has boosted Britain's high street performance.
Tesco has more than halved its profit to £354m ($540m) in the first six months of the financial year.
Sales dropped by 1.1% on a like-for-like basis, 0.2 percentage points less than analysts had forecast.