The price war among UK supermarkets are doing good to the end shoppers. Walmart owned supermarket chain Asda has announced a price cut on 1,600 products in a bid to regain its lost ground to the German discounters. Asda, the third biggest supermarket in UK after Tesco and Sainsbury’s said these price cuts on 1600 products is just the first of a series of price reductions worth £500 million. The price cut would affect basic need products including fruit and vegetables, cereal, milk, meat, eggs, fish, nappies and toilet rolls.
Similar price cuts have been made by the other big four supermarkets Tesco, Sainsburys and Morrisons after suffering loss in the quarterly sales profits. Like-for-like sales for Asda plummeted 5.8 per cent in the fourth quarter. The current quarterly sales slump is the worst ever in the company’s history. Asda is also the worst performing UK big four supermarket during the period.
Chief executive Andy Clarke said: ‘The first phase of the price investment we announced in January has kicked in today with “Pocket More” to make us lowest price on a further 1,600 lines compared to Tesco, Sainsbury’s and Morrisons – and there’s more to come. With making more investment, the supermarket plans to lessen the price difference with the discounters.