Share

Walmart’s Asda unveils more price cuts

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.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.07
-0.9%
Rand - Pound
24.07
-0.7%
Rand - Euro
20.56
-0.5%
Rand - Aus dollar
12.37
-0.2%
Rand - Yen
0.13
-0.8%
Platinum
899.20
+0.3%
Palladium
999.25
-0.3%
Gold
2,210.66
+0.7%
Silver
24.56
-0.4%
Brent Crude
86.09
-0.2%
Top 40
68,080
+0.6%
All Share
74,278
+0.5%
Resource 10
56,967
+2.4%
Industrial 25
103,572
+0.3%
Financial 15
16,456
-0.4%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders