Asda strengthens price promise after bleak Christmas

Asda has pledged to drop the cost of everyday products to below those of its competitors’ loyalty card prices as it attempts to re-position itself following a bleak Christmas.

The supermarket said thousands of its household staples are now cheaper than Tesco, Sainsbury’s and Morrisons loyalty card prices.

It said the strengthened Asda Price Promise means families can shop knowing they are paying less without needing to sign up to multiple loyalty schemes or wait for special offers elsewhere.

Asda claimed it now offers more than 2,300 everyday products at prices lower than Tesco, Sainsbury’s and Morrisons loyalty card prices, including fresh meat, fresh produce, chilled, core grocery and bakery lines.

However, the grocer is also running its own loyalty programme, Asda Rewards, which gives customers 10% back in their “Cashpot” on all fresh produce products bought in-store.

Asda chief customer officer Rachel Eyre said: “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 Price means great value with clear and consistent pricing which is available to everyone without the need for a loyalty card.”

Asda suffered a disappointing Christmas as its market share slumped to a new low of 11.4% in the 12 weeks to December 28, according to figures from analysts Worldpanel.

The slump came as sales at the grocer tumbled 4.2%, according to Worldpanel figures.

Asda was the only major supermarket to suffer a drop in sales over the festive period and December marked its 22nd consecutive month of decline.

Rivals Tesco and Sainsbury’s won over more customers in the 12-week period, widening their lead on Asda, Britain’s third largest supermarket.

Just this week, Tesco announced a promise to keep the cost of 3,000 branded products “consistently low” as part of its new Everyday Low Prices campaign.