Asda announced a round of price cuts on 9 September, shortly after Morrisons revived its ‘Price Crunch’ campaign and in response to a tough few months in which sales have been lost to discounters Aldi and Lidl. Brand View has reviewed Asda’s recent ‘That’s Better’ price cuts to see how it compares to Morrisons’ most recent price crunch campaign…see here
- Where at: From a supplier’s point of view, the issue centres on the 609 products (73% on branded items) that Asda shelf-price reduced on 8th September, by up to 34%.
- Where headed: Key will be the extent which other retailers price-cut on these SKUs, if seen to drive incremental traffic into Asda.
- Effect on you: Suppliers of these SKUs will be impacted by consumer perception of ongoing perceived value, whilst suppliers of competitive SKUs will need to consider their options…
- Action: Either way, worth digging into the Brand View analysis and exploring its potential impact on your mults’ business.