Supervalu banner Albertsons is to cut prices by up to 20% on thousands of products on sale in its stores in southern California.

Albertsons said consumers had become "increasingly budget conscious" due to concern over the economy. The retailer said it had decided to lower prices in " dozens of categories across the store where pricing is most important to customers", including peanut butter and pasta.

"Consumers today are facing mounting pressure from economic uncertainty and the desire to provide their families with good quality food," said Albertsons senior vice president of sales and merchandising Sam Mayberry. "Our Big Relief Price Cut is another example of how we are delivering greater value, and helping address our customers' challenges and meet their needs."

Albertsons operates 502 namesake and Lucky supermarkets in Idaho, Montana, southern California, southern Nevada, North Dakota, Oregon, Utah, Washington and Wyoming.