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Dignity hit as Co-op cuts funeral costs in price war

Funeral firm Dignity's shares have fallen after Co-op offered to beat the cost of ceremonies offered by rivals, amid growing competition in the sector.

Co-op is also reducing the cost of its lowest-priced "Simple" funeral.

Dignity's budget option, which includes a standard-issue coffin and no frills, is more expensive than the Co-op's, even though it cut prices this year.

Analyst firm Peel Hunt warned if Dignity cut prices further it would knock up to £1.5m off its profits.

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BBC News

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  • This started a year ago. the Co-op group has adopted the old Co-op Policy of Market disruption. the Co-ops low prices caused Dignity to stop its high margin funeral price increases, which had generated very high profits for them, and try to compete. Which meant a drastic share price drop. Its Market capitalisation fell by £800 million. this is another fall I shall be interested to check their share price tomorrow. ( fortunately Co-op shares are, as always, just £1.00 ) Dignity's weakness is having a market strategy based on high margins and a business financed by debt.
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