Asda will invest£18 million in price-cutting on electrical goods as it targets specialists such as Dixons and Comet.
The initiative is part of Asda's push to offer best value in any category it enters, and will mean some products are 48 per cent cheaper than last year.
Examples of the price reductions include a Pacific 1002 DVD player, down from£69.97 to£39.97; a Pacific 28-inch Widescreen TV, reduced from£229.97 to£189.82; and a Pacific CD Walkman, down from£18.97 to£9.93.
Asda entered the electricals market five years ago and now carries more than 80 lines. The grocer's electricals sales have risen four-fold since 2000, driven by value brands Pacific and Schneider, which are exclusive to Asda and Wal-Mart. Last October, Asda started selling top brands such as Sony, JVC and Panasonic in its category-killing Supercentres.
Asda general manager for electronics David Stewart said: 'Shoppers tell us that they enjoy the convenience of buying their electrical products from the supermarket shelves in a place and at a price they trust.'
Teather & Greenwood analyst Dave Stoddart said: 'These (cuts) are something that the likes of Dixons are going to have to get used to. It forces Dixons and Comet to focus their firepower at the higher end of the market or in areas that the grocers don't cover. You've got a choice to go head-to-head with Wal-Mart or go round them, and most people would choose to go round them.'
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