Asda has announced it is set to drop a number of well-known brands within its new format stores, Asda Essentials.

The UK arm of US giant Wal-Mart said it would primarily be stocking the new format with its own-brand products.

A spokesman said: “We will be consulting with customers to see which brands are essential to them. The key thing about Asda Essentials is that 95 per cent of the products carried will be our own brand, so there will be some big brands that don’t make it onto the shelves.”

The new format, with the first store opening later this month, is aimed at budget shoppers and will compete with the deep-discounters, such as Aldi and Lidl.

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