Is Morrisons positioning itself as a deep discounter?

Morrisons have promised to slash food prices over over 150 items - reported here in the Guardian. This isn't what traditional oligopoly theory would suggest is likely to happen but then again the sector has been far from conventional in the recent past.

It will be interesting to see how others respond - it might be the case that the other incumbents don't price match and instead try to portray the move as proof that Morrisons is now effectively a deep discounter in the UK grocery sector. This would have interesting implications for the company's pricing policy going forward. Their gross operating profits have certainly taken quite a hit in recent years.