Asda unveils fresh round of price cuts ahead of supplier showdown

The grocer announced this morning that it had reduced prices by an average of 6% across 956 products covering core grocery, household and non-edible – with some prices being slashed by as much as 30%.

Asda said that it was also cutting prices on 49 products in its ‘Free From’ range, which is for customers with food allergies and intolerances.

The fresh round of cuts comes as food inflation tops nearly 5% and the supermarket’s weekly Income Tracker found that “lower-income households are facing a weekly shortfall of £74 between their earnings and the cost of essential spending”.

Chief customer officer at Asda Rachel Eyre said: “We understand the pressure families are under from rising living costs and we’re stepping up our support as we enter an expensive time of year for our customers. We’re cutting prices on the everyday products they rely on the most, helping them bring down their food bills and get even more value every time they shop with us. This is real support, where it counts. That’s Asda Price.”

The announcement comes on the morning that senior Asda officials, including executive chair Allan Leighton, and chief commercial officer Darren Blackhurst, are scheduled to meet with suppliers at the retailer’s annual supplier conference today.

It was reported by The Telegraph that the supermarket would face pushback on price cuts from angry suppliers at the meeting, and that tension could only be exacerbated by today’s announcement.

Leighton and Blackhurst are expected to tell suppliers today about their plans for “resetting the business for growth in 2026” with a clear focus on delivering “meaningful impact” for its 20 million customers.

The supermarket’s senior leadership team will hammer home the message that “a strong, competitive Asda means more customers, more volume, and more growth opportunities for our suppliers”.

They will also tell suppliers that “growth in the discount channel is limited for brands,” given the pressures being applied by discounters on own-label products, and that Asda is “identifying opportunities to remove duplication and optimise space”.

The retailer will also share that is committed to “buying better” to reinvest in price and is “committed to maintaining” a 5% price gap on its competitors.

The spokesman added: “We look forward to hosting our supply partners at our annual conference in Leeds this week. We know that when Asda grows, our suppliers grow too, it’s a shared journey.

“By working collaboratively on price and delivering value for the millions of customers who shop with us every week, we can create momentum together and set ourselves up for a strong 2026.”