Bermuda's largest grocery chain announced yesterday it is freezing prices on non-perishable items and cutting prices of 24 staple items by ten percent in order to help families weather the economic downturn following the September 11 attacks.

Yesterday, Tredick Gorham of the Chamber of Commerce's grocer's division said he expects other supermarkets will follow suit with price cuts as well. Mr. Gorham - who is also president of Supermart - said he had yet to speak to the other chamber members but that during the last recession prices were slashed at most stores in an effort to keep costs down and as a result of increased competition.

"These recent events and the new American initiatives against terrorism are already having a substantial effect on Bermuda's economy and we believe they will continue to do so for the foreseeable future," MarketPlace stores announced via a press release.

"While we are all used to layoffs occurring during the winter season in Bermuda, winter for many this year arrived in September with layoffs in many industries, primarily those related to tourism.

"As a result of the economic situation, many families will be looking forward to an extended period of time where their incomes are either substantially reduced or gone altogether."

MarketPlace said the price freeze and staples reduction will remain in place until January 2002 when management will review the policy. The price freeze applies to all non-perishable grocery, frozen, dairy, health and beauty and general merchandise products.

Among the staple items whose prices will be slashed are sliced bread, toilet paper, tea, juices, spaghetti, corn oil and peanut butter.

The company said it could not freeze prices on perishables however.

MarketPlace also announce it will launch its `Share the Christmas Spirit' food basket programme two weeks early.

"This is a time that we all need to pull together," the company said. "Bermudians are among the most giving people in the world. Now is the time to focus on Bermuda. We believe that all of Bermuda's charities will be heavily taxed over the next six months and we all must be prepared to do what we can."

The company's Christmas programme is run in conjunction with the Lions clubs and tinned goods are collected in the stores which are later arranged into food hampers and distributed to those in need. The basket programme will begin on November 2 this year.

MarketPlace will also continue to offer its weekly specials.