Asda is cutting the cost of 956 everyday grocery products as part of its commitment to improve its price competitiveness.
The struggling supermarket’s latest round of cuts includes cupboard staples such as pasta, cooking sauces, tea and coffee. Examples include Yorkshire Tea (240 pack) being reduced from £6.32 to £5, Asda Gravy Granules reduced from £1 to 69p, and Asda Chicken Tikka Masala (392g) down from £2.40 to £1.57.
Asda is also cutting prices on 49 products in its ‘Free From’ range, with some reducing by up to 15%. The retailer noted the move reflected the fact that people with food allergies or intolerances often face higher costs.
Asda stated that its price cuts were intended to help ease the financial pressures currently being faced by many households as they head into the most expensive time of year. The reductions are in addition to 3,452 Rollback deals currently available in its stores.
“We understand the pressure families are under from rising living costs and we’re stepping up our support as we enter an expensive time of year for our customers,” said Rachel Eyre, Chief Customer Officer at Asda.
“We’re cutting prices on the everyday products they rely on the most, helping them bring down their food bills and get even more value every time they shop with us. This is real support, where it counts. That’s Asda Price.”
Asda is holding its annual supplier conference today, with reports suggesting it will urge food and drink brands to agree to deeper price cuts as part of its drive to win back shoppers.
NAM Implications:
- Much depends upon the extent to which rival retailers believe that these extra price cuts will make a difference.
- And cause them to retaliate directly…
- …via deeper pockets than Asda.
