The launch of a host of multi-buy offers last week is part of Asda's EDLP Plus strategy, installing promotions alongside its renowned every day low price (EDLP) approach.
Asda has revealed it is cutting prices by£231 million in the first half of this year, described by Wal-Mart treasurer Jay Fitzsimmons as 'the largest food price roll-backs in [Asda's] history'.
However, last week's promotional blitz highlights the fact that the price reductions alone may not be enough as the food retail fight intensifies. Brands in the first wave of promotions include Coca-Cola, Doritos, Batchelors Pasta 'n' Sauce and Pot Noodle.
An Asda spokesman said: 'This is on top of EDLP. We want to give our customers the best value possible. We will continue to offer the best prices week in week out, but when suppliers have marketing cash they want to spend with us it would be foolish not to take them up on it.'
While Tesco has continued to enjoy strong growth, Asda's sales momentum has slowed. Comparable sales at Asda in the first quarter were up in the low-single digits, but broker Shore Capital estimated the figure to be 'barely positive'. Total sales were in the 'low end of the mid-single digit range'. Wal-Mart said Asda operating profit for the quarter was 'below plan'.
Asda's spokesman highlighted five years of 'stunning' growth. He said Asda now faces tough comparisons, but is still growing
in line with the total market.