Asda ramps up price focus

Asda is ratcheting up its focus on price promotion by cutting the price of a raft of “everyday essentials” to £1, just as its rivals appear to be shifting focus to loyalty and rewards.


The Walmart-owned supermarket has slashed the price of several “favourites” including a 1.5 litre bottle of Coke and Warburton’s sliced bread.

A marketing campaign to back the price cuts illustrates how much cheaper the supermarket is than rivals Tesco, Morrisons and Sainsbury’s.

Earlier this week, Asda also cut fuel prices by 3p a litre.

Asda’s move comes as the other “big three” supermarkets turn away from the price promotion over fears that excessive discounting to satisfy cash-conscious consumers is having a damaging impact on margins.

Tesco has dialled down marketing of its “Big Price Drop”. Earlier this week, it signalled a move away from issuing money-off coupons in favour of targeted offers using Clubcard data.

Meanwhile, Morrisons is to focus its promotional activity on targeted coupons based on shoppers’ purchases after CEO Dalton Philips slams the “nuts” level of vouchering and coupons in the UK.

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