Asda has announced it will spend £50 million in the first quarter of 2014 to slash the prices of many household staples, including several fresh products.
Broccoli, cauliflower and tenderheart cabbage are all being reduced from 60p to 50p. Iceberg lettuce and spring onions will also be priced at 50p as the retailer said it aims to make discounters such as Aldi look expensive.
The cuts are part of a wider price investment of £200 million for this year, up £70 million from 2013, and will be used to reduce prices on own label as well as branded ranges.
Barry Williams, Asda’s chief merchandising officer for food, said: “It goes without saying that Christmas can be a struggle financially and when you look at the way people have reacted to the sales, it’s more clear than ever that UK shoppers’ priorities are well and truly focused on price.
“With hundreds of products at 50p, we’re even making the Poundshop and Aldi look expensive.”
The direct comparison with the largest budget-store has not gone unnoticed, with the editor of Retail Week, George MacDonald, tweeting that it is a sign of the intensity of competition at the moment.
Williams said the decision to spend the first £200 million of a five-year price investment plan in 2014 is proof that Asda is fully committed to significantly widening the price gap to the market, and continuing to close the gap to the discounters.
He added: “The investments we are making in price mean we can guarantee to be 10 per cent cheaper than the competition, day in day out. We won’t achieve this through confusing vouchering schemes or other price gimmicks but through simple and honest pricing and significant and lasting investment.”
The investment will be funded through savings generated by Asda’s ‘We Operate For Less’ programme, as well as through the global leveraging power it has with parent company Walmart.
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