Asda has intensified a supermarket price battle by unveiling significant savings on close to 1,000 products. The retail giant is slashing prices by an average of 6% across various product categories, with some items seeing reductions of over a third. This move is part of Asda’s strategy to regain customers lost to competitors in recent years.
The potential participation of other supermarkets in this price competition could mean substantial savings for millions of shoppers, especially amid a notable increase in food price inflation. Tesco’s CEO, Ken Murphy, has hinted at more aggressive pricing competition in the coming months.
Based in Leeds, Asda is reducing prices on 956 everyday grocery items both in-store and online as part of its commitment to Asda Price. The discounted products, which mainly consist of Asda’s own-label lines, include pasta, cooking sauces, tea, coffee, and more.
Individual products receiving price cuts 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 extend to 49 products in Asda’s ‘Free From’ range for consumers with food allergies or intolerances.
This initiative comes as food price inflation hit 5% in September, with predictions of further increases ahead, impacting the cost of holiday shopping. Asda’s Income Tracker revealed that lower-income households are experiencing a weekly budget gap of £74 between their earnings and essential expenses.
Rachel Eyre, Asda’s Chief Customer Officer, emphasized the brand’s support for families facing rising living costs during the upcoming expensive season. Asda aims to help customers reduce their food bills and enhance their shopping value by lowering prices on essential products. This effort aligns with Asda’s commitment to providing tangible support where it matters most.
Under the leadership of executive chairman Allan Leighton, Asda is striving to reverse a prolonged sales decline. Recent data from Kantar indicated a 2.7% drop in Asda’s sales in the three months leading up to early September.
Despite revenue slipping from £24.6 billion to under £23.8 billion, Asda’s big stores reported no corporation tax payment last year due to a significant financial loss of over £830 million. The loss was primarily attributed to an accounting adjustment related to the brand’s investment in price reductions.