Asda has intensified a supermarket price competition by unveiling significant savings on nearly 1,000 products. The supermarket giant plans to slash prices by an average of 6% across various product categories, with some items reduced by more than a third. This strategic move by Asda is aimed at attracting customers from competitors, as the company has been trailing behind its rivals in recent years.
If other supermarkets follow suit, it could result in substantial savings for millions of consumers, particularly amidst a notable increase in food price inflation across the industry. Tesco’s CEO, Ken Murphy, hinted at heightened price rivalry in the coming six months, indicating a potential industry-wide trend.
Based in Leeds, Asda announced reductions on 956 everyday grocery items, both in physical stores and online, as part of its ongoing commitment to Asda Price. The discounted products, including pasta, cooking sauces, tea, and coffee, largely consist of Asda’s own-label offerings rather than prominent brands.
Among the products seeing price cuts are a 240-pack of Yorkshire Tea reduced to 2p per teabag from £6.32 to £5 per box, and Asda Gravy Granules dropping from £1 to 69p. Additionally, Asda has decreased prices on items like Asda Chicken Tikka Masala, Asda Chicken Korma, and Asda Beef Stew in a Rich Gravy, with discounts ranging from 28.4% to almost 35%.
Noteworthy reductions also include Asda Instant Hot Chocolate and Asda Smooth Milk Chocolate Flavour Spread, among others. The price adjustments encompass 49 products in Asda’s ‘Free From’ range catering to individuals with food allergies or intolerances.
This initiative comes as food price inflation hit 5% in September, with experts warning of further increases in the upcoming months, potentially impacting holiday shopping costs. Asda’s Income Tracker revealed that lower-income households are experiencing a weekly financial gap of £74 between their earnings and essential expenses.
Rachel Eyre, Chief Customer Officer at Asda, emphasized the company’s support for customers facing rising living costs, particularly during the expensive holiday season. Eyre highlighted the importance of reducing food bills and providing enhanced value to shoppers through lowered prices on essential products.
Under the leadership of executive chairman Allan Leighton, Asda is striving to reverse a prolonged sales decline. Recent data from industry analysts Kantar indicated a 2.7% sales drop for Asda in the three months leading up to early September.
Despite facing financial challenges, including a £834 million loss last year and a revenue decrease, Asda remains focused on delivering value to customers through price adjustments and strategic business decisions.