- Asda slashes prices on more than 1,000 products
- Walmart-owned grocer cuts prices of basket staples by an average of 15%
- Comes as new boss Sean Clarke grapples to rejuvenate the grocer’s sales
Asda has launched a fresh wave of price cuts as new boss Sean Clarke attempts to rejuvenate the grocer’s ailing sales, Retail Week can reveal.
The Walmart-owned supermarket giant has slashed prices of more than 1,000 products by an average of 15% across a host of categories including fresh meat, fish and ambient goods as it bids to win back shoppers from its big four rivals and discount duo Aldi and Lidl.
Asda declined to comment on how much it has ploughed into price as part of its new ‘That’s Better’ campaign, but it is understood that the investment does not exceed the £1.5bn budget that had been earmarked to cut prices across a five-year period.
Sources close to the situation said there would be “more to come” during the crucial Christmas trading period.
The grocer has also cranked up the quality of “hundreds” of its own-brand products and invested in its supply chain to put “fresher fruit and vegetables on shelves” and drive improvements in availability.
A TV advertising campaign to accompany the fresh wave of investment will premiere during The X Factor on ITV tomorrow night, while in-store marketing is also being rolled out across its estate.
It comes as Clarke, who was parachuted in from Walmart’s Chinese business in June to succeed namesake Andy Clarke, bids to transform Asda’s fortunes.
Asda’s like-for-like sales slumped 7.5% during its second quarter – its worst-ever quarterly sales performance.
But Walmart’s international boss, Dave Cheesewright, insisted during the US retail titan’s shareholders week in June that Asda would shift its focus from protecting profit to growing market share as it bids to mount a fight back.
That put its UK rivals on red alert and Asda has now launched the price salvo that many had been expecting since Cheesewright’s comments.
Products such as 500g of beef mince will drop in price from £1.85 to £1.69, 325g of large prawns will cost £3.50 instead of £4.87, while Asda’s British medium chickens have been reduced to £2.69.
Asda’s own-label tomato ketchup, brown sauce, instant coffee, basmati rice and grated, block or sliced cheeses will also see prices tumble.
Asda boss Sean Clarke said: “This week we’re taking the next step in our journey to deliver better value for our customers and to improve quality.
“We will continue to listen to our customers and take action, with better prices for products they buy week in, week out.”