Walmart’s Asda unveils more price cuts | Fin24
 
  • Data Market Inquiry

    MTN says it is prepared to defend itself before Competition Tribunal over report.

  • Claims of sabotage

    What we know so far about allegations of sabotage at an Eskom power station.

  • Dudu Myeni

    Court dismisses former SAA chiar's bid to have Outa withdraw from delinquency case.

Loading...

Walmart’s Asda unveils more price cuts

Jan 10 2016 17:33
Sam Chambers

London - Walmart Stores Asda has pledged to invest an additional £500m in cutting prices, creating further upheaval for the UK’s largest supermarket chains.

To fund the move, Asda is changing how it buys products. The grocer is joining Europe’s leading buying alliance European Marketing Distribution, which pools the collective power of 250 supermarket chains, to make the required savings. Asda expects 2016 to be another challenged year for UK grocers.

“The rise of the limited assortment discounters means that we must take radical action to win back our customers." chief executive Officer Andy Clarke said in a statement Sunday.

Asda’s latest price cuts come at a time when its sales are falling at a faster rate than at any of its rivals, despite being more than 12 months into its existing five-year plan to lower prices by £1bn ($1.45bn). The grocer’s move signals that the price war among UK supermarkets, prompted by the growing popularity of discounters Aldi and Lidl, is set to continue into 2016.

Asda will disclose its fourth quarter results on February 18.

walmart  |  retail
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote

Loading...