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Asda Adds 249 More Price Cuts, Focusing on Fresh Food Before Christmas

The retailer aims to be 5% to 10% cheaper than major rivals to reassert its value position.

Overview

  • The latest round covers 249 products, including 197 fresh items across meat, fish, poultry and produce, with average reductions of about 7% and some as steep as 50%.
  • This tranche follows more than 1,000 price cuts announced last week as Asda revives its Asda Price campaign ahead of the peak trading period.
  • Media reports say Tesco has trimmed its full-year profit forecast by roughly £400 million and Sainsbury’s has set aside funds to respond to the pricing push.
  • Investors reacted to the move, with Tesco shares down up to 4.3% and Sainsbury’s off as much as 3.1% following Asda’s announcement.
  • Fresh market data show Tesco’s share rising to 28.3% in the 12 weeks to 5 October as Asda’s slipped to 11.8% with sales down 3.2%, highlighting the competitive pressure.