Aldi takes on EDLP rivals with £7m price reduction

Discount grocer Aldi has slashed£7 million a year from prices of 50 own-brand grocery products to keep up with EDLP rivals such as Asda.

The German retailer, which has 268 stores in the UK, will cut prices on a further 50 lines by September.

Aldi is backing up the price reductions with drops of 14 million leaflets to 7 million households, in addition to national press advertising.

A spokesman said: 'We have always had immensely competitive prices. Since opening the first Aldi supermarket in the UK in 1990, it has been our policy to price groceries up to a third lower than supermarket competitors for products of like-for-like quality. We keep our prices under constant review. The new price cuts campaign means that Aldi shoppers can get even better value for money, not just for the duration of the campaign, but permanently.'

Robert Clark, research director at Retail Knowledge Bank, said: 'Aldi has stalled in the UK in recent times. Its turnover has stagnated in the last three years and the reason for that is Asda, who have knocked some of the wind out of Aldi's sales.

'The price difference between the two is now much closer and Aldi has certainly been feeling the competitive heat. This is clearly a move to try and combat that (pressure from Asda).'

- Symbol group Nisa-Today has launched a£20 million promotions campaign, cutting prices on 70 products across ambient, chilled, frozen, fresh and beers, wines and spirits.