The top two UK retailers are set to mount what could break out into an all-out supermarket price war, starting this weekend.
Asda is to slash the price of 10 top-selling core groceries to just 50p each this weekend, but it has promised not to pass the cost on to its suppliers.
Tesco will follow on Monday, by reducing the price of 3,000 items by up to 50 per cent.
This could mark the start of fierce price-cutting in a bid to win over those hit by inflation and the credit crunch.
All 329 Asda stores will feature the inflation-busting price cuts from Friday to Sunday inclusive, halving the cost of a basket of core groceries from £10.83 to just a fiver.
The core staples comprise fruit and vegetables including bananas, grapes and potatoes, as well as bread and butter, and eggs.
The retailer said the £5 basket is more than 30 per cent cheaper than the same basket would have cost at ASDA 12 months ago.
Darren Blackhurst, food trading director at Asda, said: “We are totally committed to giving our customers the lowest prices in Britain every day of the year. Value for everyone is what Asda stands for and, with the credit crunch starting to bite and household bills on the rise, that has never been more important.That is why we’re investing in price cuts where they really count for our customers, on everyday staples such as bread and butter, eggs and fruit and veg.
‘With our monthly income tracker showing the average family in the UK is £8 a week worse off now compared to this time last year, we are aiming to reverse that trend and put money back into customers’ pockets this weekend.”
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