Companies
March 26, 2025
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Asda Cuts Prices on 1,500 Items in Price War Strategy

Asda has slashed prices on 1,500 products in a move aimed at halting its sales decline. The UK supermarket chain, which has already reduced prices on nearly 10,000 items since January, hopes to position itself as the go-to retailer for discounted branded groceries. However, analysts are skeptical about its ability to win back market share, especially with rivals like Aldi and Lidl growing in popularity.
Asda Cuts Prices on 1,500 Items in Price War Strategy

Asda has embarked on a major price-cutting initiative, reducing the prices of 1,500 products to combat its sales slide. The UK supermarket has already lowered prices on almost 10,000 items since January, with reductions averaging 22% and some items seeing cuts of up to 45%. The retailer’s goal is to close the price gap with rivals like Tesco, Sainsbury’s, and Morrisons while also positioning itself as the top choice for discounted branded groceries, particularly in online sales.

Despite the aggressive pricing strategy, there are doubts about Asda's ability to reclaim market share. The supermarket chain has faced challenges in recent years, including IT issues and a significant debt load. Analysts have pointed to the competition from Aldi and Lidl, which have been growing rapidly, as well as the advanced loyalty programs offered by Asda’s rivals. Some experts believe that while price cuts can attract customers in the short term, Asda must address other issues like product availability and store cleanliness to succeed in the long run.

Allan Leighton, Asda’s chairman, has stated that the retailer plans to continue lowering prices for the rest of the year and beyond. However, he acknowledges that the process of turning the company around could take up to seven years. This extended timeframe reflects the significant challenges Asda faces in regaining its market position and responding to the broader supermarket price war.

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