Asda is to unleash a round of aggressive price cuts throughout its UK stores, making the first move in what looks set to spark this year’s Christmas price war .
Britain’s second largest supermarket yesterday announced it was cutting a total of £150m off the price of 2,500 festive items in the run-up to Xmas, including food, George clothing, toys, gifts and electrical goods in stores nationwide .
The bargains include Christmas puddings for 98p and a dozen mince pies for just £1.
“We’re lowering the cost of Christmas for millions of customers all over the UK, saving everyone money when they need it the most,” said Asda’s chief executive Andy Bond.
“Our research shows that the family budget is being stretched to the limit. That’s why we’ve invested £150m in our biggest ever set of festive price cuts.”
Christmas calculations by economists CEBR reveal the average British family will spend £448 on Christmas drink, food, toys and gifts this year – a 3 per cent increase on figures for 2006.
The company’s chief executive Douglas McWilliams commented: “Cheap consumer goods from the Far East meant that the cost of Christmas fell every year from 2000 to 2005. But this year, like last, Christmas will be a little more expensive.”
“This is for two reasons – first the fall in prices of goods from the East will be less than before, and second, market led food and drink price inflation will make festive eating and drinking more expensive.”
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