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Asda cuts prices in credit crunch move

Store slashes cost of 1,000 products

Asda will offer discounts on 1,000 products from today in a move likely to ignite a ‘credit crunch’ price war between the supermarket giants in 2009.

Asda said there would be price cuts on 1,000 essential items in its 350 stores across the UK, ranging from fresh and frozen goods to bakery items and toiletries.

The offers include £1 deals on a range of 100 frozen goods, three-for-£10 deals on leading wines, three-for-£10 offers on selected joints of chicken or meat and 200 everyday health and beauty lines such as shampoo and deodorant at £1.

Reduced prices

Asda said it guaranteed that at any one time there would always be 1,000 items with reduced prices although some fresh produce would vary according to the season.

The chain said the price cuts would be funded by a drive launched last year to reduce unnecessary costs in its business.

A spokeswoman for supermarket giant Tesco, responding to the Asda announcement, said: ‘We have already dropped our prices on thousands of everyday lines and we have more to come.’

Carrier bag usage

Andy Bond, Asda president and chief executive officer, said: ‘2009 is going to be a very difficult year and I believe we have an obligation to help our customers through these tough times.

‘They want to know when they spend their hard-earned cash that they’re getting real value for money and not just a gimmicky price promotion.

‘No longer can retailers claim they’re investing hundreds of millions of pounds in lowering prices and not provide hard evidence as to how and for how long.

‘All 165,000 Asda colleagues will continue to work flat out this year to save energy, cut waste and carrier bag usage, and we will invest the money we save in lowering the price of the products customers buy week in week out.’

British Retail Consortium

The Asda announcement comes after the British Retail Consortium predicted price cuts and special offers were likely to continue throughout 2009.

It was announced on Wednesday that Tesco had cut 3p a litre from unleaded and diesel at its 430 petrol filling stations.

Total UK and Shell also said they were dropping their lowest petrol price to 82.9p a litre.

The news of the reductions came a day after the AA motoring organisation said the price of petrol had hit a three-year low.

© Press Association 2008

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