Asda has announced it will invest an additional £100 million into lowering prices.
The news came shortly before supermarket giant Tesco announced its plans to start an aggressive price war, after a disappointing 2.4 per cent decline in like-for-like sales over the Christmas period.
Asda had already put £200 million into reducing prices for its customers, but with an additional injection of cash, it is trying to claw back those who have recently turned to discount supermarkets, such as Aldi and Lidl, to do their shopping.
Chief merchandising officer for food for Asda Barry Williams said: “We’ve curly seen a seismic shift in the retail market over the last quarter and customers are more demanding than ever in their expectations around price and quality.”
He added the store was primed and ready to meet such expectations and that this investment will see “thousands of products” made even more affordable for customers.
This additional £100 million will be put towards lowering the prices of Asda’s own brand range of products.
Asda recently announced its like-for-like sales for the fourth quarter of 2013, reporting a slight decline of 0.1 per cent.
