The drive follows price-cut initiatives from Tesco and Asda earlier this month, with the Co-op looking to improve sales and market share this Christmas.
The Co-op is also planning to give its four million dividend-card members vouchers worth 6p for every £1 that they spend over the Christmas period, whichis three times the normal payout.
According to the latest TNS supermarket figures, which monitor consumer spend for the 12 weeks preceding 1 November, The Co-op increased its share by 0.1% to 5.4%, compared with the previous year. This figure excludes Somerfield, which dropped from 3.8% to 2.6% in the same period.
This month Tesco announced it was aiming to save customer £250m in the run up to Christmas through price cuts. Whilst rival Asda pledged to cut costs throughout stores by £150m for Christmas.