Asda has intensified a price competition in the supermarket sector with the announcement of significant savings on nearly 1,000 products. The retail giant is reducing prices by an average of 6% across various product categories, with some items seeing cuts of over one-third. This strategic move aims to attract more customers to Asda, as the company aims to regain market share lost to its competitors in recent years.
The cost reductions on 956 everyday grocery items, available both in-store and online, are part of Asda’s commitment to its pricing strategy known as Asda Price. The discounted products include pasta, cooking sauces, tea, and coffee, primarily from Asda’s own-label range rather than major brands.
Specific products seeing price drops include Yorkshire Tea, now priced at 2p per teabag, Asda Gravy Granules reduced to 69p from £1, and various ready meals like Chicken Tikka Masala and Chicken Korma discounted by almost 35%. Asda is also lowering prices on items like Instant Hot Chocolate and Milk Chocolate Flavour Spread.
The move comes amid a 5% increase in food price inflation in September, with experts warning of further rises, particularly impacting Christmas shopping budgets. Asda’s Income Tracker shows that lower-income households are experiencing a weekly shortfall of £74 between earnings and essential expenses.
Rachel Eyre, Chief Customer Officer at Asda, emphasized the company’s support for families facing rising living costs, especially during the upcoming expensive period. She highlighted the price cuts on essential products to help customers reduce their food bills and maximize the value of their shopping trips.
Asda, led by executive chairman Allan Leighton, is focused on reversing a long-term decline in sales. Recent data from Kantar revealed a 2.7% decrease in Asda’s sales in the three months leading up to early September. Additionally, Asda’s large stores did not pay corporation tax last year due to a significant financial loss, mainly attributed to investments in price reductions.
Through its pricing initiatives and customer-centric approach, Asda aims to strengthen its position in the market and provide valuable support to consumers facing financial challenges.