As part of a new round of savings, Asda has intensified a price competition among supermarkets by reducing prices on nearly 1,000 products. The average price cut across various product categories is 6%, with some items discounted by over a third. This move aims to attract more customers to Asda, who have lost ground to competitors in recent years.
If other supermarkets follow suit, it could lead to significant savings for millions of shoppers, especially amidst a sharp increase in food price inflation. Tesco’s CEO, Ken Murphy, suggested a more competitive pricing environment in the coming months. Asda, headquartered in Leeds, is lowering prices on 956 everyday grocery items both in-store and online as part of its Asda Price commitment. These items mainly consist of Asda’s own-label products rather than major brands.
Specific products receiving price reductions include Yorkshire Tea, Asda Gravy Granules, Chicken Tikka Masala, Chicken Korma, Beef Stew, Instant Hot Chocolate, and Smooth Milk Chocolate Flavour Spread. The reductions also cover products in the ‘Free From’ range for individuals with food allergies or intolerances.
With food price inflation hitting 5% in September and expected to rise further, Asda’s efforts come at a crucial time for consumers, particularly as the holiday season approaches. Rachel Eyre, Asda’s Chief Customer Officer, emphasized the importance of supporting families facing rising living costs by reducing prices on essential products. Asda is striving to reverse a long-standing decline in sales under the leadership of executive chairman Allan Leighton. Recent data from Kantar revealed a 2.7% drop in Asda’s sales in the three months leading to early September.
Despite experiencing a significant financial loss, with revenues decreasing and a substantial accounting adjustment linked to price cuts, Asda remains committed to providing value to its customers through lower prices.
