Asda has intensified the competition in the supermarket industry by unveiling a significant reduction in prices for nearly 1,000 items. The price cuts, averaging 6%, span various product categories, with some items marked down by over a third. This strategic move by Asda aims to attract more customers and regain market share lost to competitors in recent years.
The price reduction initiative by Asda could lead to substantial savings for millions of shoppers, particularly amidst a notable increase in food price inflation across the market. Tesco’s CEO, Ken Murphy, hinted at heightened price competition in the coming months, suggesting a potential domino effect if other supermarkets follow suit.
As part of its commitment to Asda Price, the Leeds-based retailer is slashing prices on 956 everyday grocery products available both in-store and online. The discounted items, predominantly Asda’s own-label brands, include pasta, cooking sauces, tea, and coffee.
Among the numerous products receiving price cuts, notable reductions include Yorkshire Tea, Asda Gravy Granules, Chicken Tikka Masala, Chicken Korma, Beef Stew, Instant Hot Chocolate, and Smooth Milk Chocolate Flavour Spread. Additionally, Asda is extending discounts to 49 items in its ‘Free From’ range catering to individuals with food allergies or intolerances.
The move comes at a time when food price inflation hit 5% in September, with warnings of further increases ahead, potentially impacting the cost of holiday shopping. Asda’s Income Tracker revealed a weekly deficit of £74 for lower-income households compared to essential spending.
Rachel Eyre, Asda’s Chief Customer Officer, emphasized the company’s support for customers facing rising living costs, particularly during the expensive holiday season. She highlighted the importance of reducing food bills and providing enhanced value to shoppers through price cuts on essential products.
Under the leadership of executive chairman Allan Leighton, Asda is striving to reverse a prolonged decline in sales. Recent data from Kantar indicated a 2.7% drop in Asda’s sales in the three months leading to early September. Despite the revenue decline from £24.6 billion to under £23.8 billion, the chain reported a significant loss of £834 million largely attributed to an accounting adjustment linked to its investment in price reductions.