Asda opens fire in new price war

Asda has entered an own-label price war with rival Kwik Save, which is launching a range of quality own-brand products.

The Kwik Save range of 150 food and non-food lines is priced about ten per cent lower than own-label products from Tesco and Asda. It is being introduced to the chain’s 900 stores with a 3m point-of-sale marketing programme.

In response, Asda has pegged price rises on a number of its own-label products, and is not passing supplier price increases on to consumers. The chain admits it is adjusting its prices in response to the Kwik Save launch. A spokeswoman says: “With ‘permanently low prices’ we check 12,000 prices a week and Kwik Save is included in that. The price check activity will now incorporate these Kwik Save products.”

When the discount chain announced it was launching the new range at the end of last year, it raised fears that margins across the grocery sector could be damaged as rivals pegged their own-label prices in response. Kwik Save marketing director Phil Smith says the chain is primarily targeting Asda in the battle to win back shoppers.

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