Asda has introduced a sweeping price reduction on more than 2,300 everyday products, aiming to make its prices more competitive than those of Tesco, Sainsbury’s, and Morrisons. This major move is designed to attract customers and help families manage rising costs following the post-Christmas financial pinch.
The new price initiative, part of Asda’s “Price Promise,” is seen as a direct response to the supermarket’s disappointing performance over the festive period. Asda’s market share recently slumped to a record low, and the company is now looking to regain consumer confidence with aggressive price cuts across key product categories.
A Response to Declining Market Share
The price reductions come as Asda struggles to recover from a challenging Christmas season. According to analysts from Worldpanel, the supermarket saw a 4.2% drop in sales during the 12 weeks leading up to December 28, marking its 22nd consecutive month of decline. This performance has positioned Asda as the only major supermarket to experience a fall in sales during the festive period, trailing behind its competitors, including Tesco and Sainsbury‘s, which reported growth.
In an attempt to regain ground, the supermarket has announced that thousands of its products, ranging from fresh meat and produce to core groceries and bakery goods, are now priced lower than the equivalent items at Tesco, Sainsbury’s, and Morrisons when factoring in loyalty card discounts. Asda is also promoting its own loyalty programme, Asda Rewards, which offers customers 10% back in their “Cashpot” on all fresh produce purchases made in-store throughout January.
Rachel Eyre, Chief Customer Officer at Asda, commented, “We know many families are feeling the pinch post-Christmas and it can be difficult to get household budgets back on track. We want to help by giving them the lowest prices on the products they buy the most.”
Asda’s Price Cuts and Loyalty Benefits
The supermarket chain is focusing on key items that families purchase regularly, ensuring that they are competitively priced. Among the products included in the new pricing initiative are Pampers Baby Dry nappies, which have been reduced to £6 from £11, and Philadelphia Original Soft Cream Cheese, now £1, down from £1.35. Other products affected include Warburtons Tiger Bread (600g), which is priced at £1.40, a reduction from £1.65, and Ariel PODS (21 pack), which have been cut to £6, down from £12.
These price cuts are not just aimed at larger products but also at everyday grocery items such as Goodfella’s Stonebaked Margherita Pizza, now £1.75, down from £2.90, and Quorn Southern Fried Burgers, which are priced at £1.64, a savings of over £1. According to Asda, these reductions provide shoppers with a tangible saving on items they buy regularly, making it easier for families to maintain their budgets during a financially strained period.
Asda’s commitment to offering lower prices without the need for loyalty cards or special offers is a core part of its strategy. Eyre emphasised that Asda Price offers “great value with clear and consistent pricing,” ensuring that customers don’t need to sign up for multiple schemes or wait for sales events.
The announcement is also a direct response to rival Tesco’s new “Everyday Low Prices” initiative, which promises to keep the cost of 3,000 branded products consistently low. With its price cuts and enhanced rewards programme, Asda is hoping to position itself as the go-to supermarket for value-conscious shoppers looking for consistent savings.
Asda’s aggressive price-cutting strategy reflects a need to regain market share following its recent performance slump. By offering lower prices on essential products and enhancing its loyalty programme, the supermarket hopes to attract more customers and increase its appeal in a competitive retail market.
