Asda has become the first supermarket in the UK to price match both the leading discounters in an effort to “reinforce its value credentials”.
Tesco and Sainsbury’s have schemes that match prices at just Aldi. However, from today, Asda is price-matching Aldi and Lidl on 287 comparable grocery lines. The retailer claims it reduced prices by an average of 17% to match whichever discounter has the lowest-cost product.
The scheme covers items such as milk, bread, cheese, tea, coffee, fresh meat, fresh fruit & vegetables, baked beans, pasta, rice and breakfast cereals. All the products in the initial list appear to be Asda own-label lines.
The Aldi & Lidl Price Match initiative will run alongside Asda’s established value propositions, including Price Drop and Asda Rewards.
The supermarket noted that it was also continuing to add products to its M&S Taste Match campaign, which pledges to match M&S’s renowned quality but at “Asda prices”.
David Hills, Asda’s Chief Customer Officer, commented: “We have launched Aldi and Lidl Price Match to help them [families] save both time and money. Our customers can trust that they will get uncompromising value every day at Asda and George – on everything from food and clothing to homeware and Cashpot rewards, as well as the lowest prices on supermarket fuel.”
The move comes after Asda underperformed its rivals in 2023, with its market share slipping from 14.0% to 13.6% over the year to 24 December (Kantar). Latest industry data also confirms that the UK’s third biggest grocery retailer was a relative laggard during the key Christmas trading period, with sales growth of just 3.2%, compared to 7.5% and 9.3% at Tesco and Sainsbury’s respectively.
NAM Implications:
- Asda appears to be betting on staying ahead of debt via these initiatives…
- …in terms of growing share and sales.
- (Tight, even if the discounters don’t retaliate…)
