Walmart owned supermarket giant Asda announces plan to spend extra £500 million on cutting prices in its stores. The new plans to investment comes in addition to the £1 billion it promised to spend in November 2013 to cut prices over five years and it is an indication that the pressure on huge four supermarket from Aldi and lidl continue to increase.
Asda CEO Andy Clarke pointed out that after the rise of German discounters there is a lack of growth and the move is a radical action to win back its customers. He said that 2016 is another year of extreme stress at a macroeconomic level, as sales remain under pressure from price deflation, a continued competitive background throughout the sector, and drastically changing buyer’s habits.
Asda is due to provide an inform on its latest quarter of trading reports on February 18, at the same time with its parent company. It was the bad performer for sales among Britain’s supermarkets last year, with management picking to ensure net revenues as opposed to pursue top-line sales. Britain’s other supermarket chains Tesco, Sainsbury and Morrison’s will reporting Christmas trade figures on this week.