Asda has launched an aggressive pricing offensive, slashing costs on 956 items with reductions averaging six per cent.
Some products have seen cuts exceeding thirty per cent as the retailer fights to reclaim lost ground in an increasingly competitive marketplace.
The announcement sent ripples through the retail sector yesterday, with rival supermarkets seeing share price declines.
Tesco PLC fell by 0.2 per cent whilst J Sainsbury plc dropped 0.6 per cent as investors digested the implications of what analysts are calling a potential festive season price war.
The timing is strategic, coming just as households prepare for what is traditionally the most financially demanding period of the year.
The supermarket has reduced prices across essential groceries, household goods, non-food products and speciality dietary ranges.
Yorkshire Tea’s 240-pack has dropped to £5 from £6.32, whilst own-brand gravy granules have fallen from £1 to 69p.
Ready meals have seen some of the steepest cuts, with the chain’s chicken tikka masala dropping from £2.40 to £1.57.
Asda has launched an aggressive pricing offensive
|ASDA
The retailer has also addressed the premium typically associated with dietary alternatives, cutting prices on 49 items within its ‘Free From’ selection by up to 15 per cent.
These reductions complement more than 3,400 existing promotional offers through the supermarket’s "Rollback" programme.
The cuts apply both in-store and online, ensuring access for all customers.
Asda’s market share has declined from 12.7 per cent to 11.8 per cent over the past year.
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The supermarket has reduced prices across essential groceries, household goods, non-food products and speciality dietary ranges
| gbnewsOnce Britain’s second-largest supermarket, the chain has faced mounting challenges since Mohsin Issa, Zuber Issa and TDR Capital acquired it through a £6.8billion debt-laden transaction in 2020.
Executive chairman Allan Leighton, who previously served as chief executive between 1996 and 2000, returned to the business last year to lead its turnaround.
His strategy involves undercutting competitors’ prices by seven to ten per cent within the next 12 months.
This latest move marks a further stage in Leighton’s 2025 campaign of price reductions aimed at restoring the chain’s competitive edge.
Retail analyst Jonathan De Mello said: "Asda is clearly not pulling any punches with this latest initiative.
"Asda under Allan Leighton appears to be adopting a 'go hard or go home' mentality, and that frankly is what the business needs to stand any chance of winning shoppers back."
Mr De Mello warned of broader market implications, noting: "Predictably, Tesco and Sainsbury's have taken a share price hit as a result of Asda's announcement, given the potential for a protracted price war in the run up to the key Christmas period."
Industry observers suggest further price cuts may follow across the sector before the festive season, as rivals respond to what one expert described as Asda’s “go big or go home” strategy.
This squeeze comes as households brace for heightened seasonal costs
| GETTYThe retailer’s latest Income Tracker shows that lower-income families are facing a £74 weekly deficit between earnings and essential spending.
This squeeze comes as households brace for heightened seasonal costs.
Rachel Eyre, chief customer officer, 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."
She added: "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."