Asda has announced plans to up its price war with budget rivals Lidl and Aldi by asking suppliers for a discount, in an attempt to claw back its declining market share.
The supermarket, who is set to release results later today, have struggled significantly to keep afloat in the rapidly changing grocery market and have become the UK’s worst-performing supermarket. ASDA have since pledged to keep its prices just 5 percent higher than Aldi and Lidl, and invest more than £1 billion into making this happen. Since then, the chain have said that they are“working collaboratively with suppliers” to ensure it had the right ranges, quality and prices for its shoppers – and hoping for discounts and cash contributions from suppliers to meet their target.
Asda’s chief merchandising officer Andrew Moore said: “Value is an important part of it. You can see what’s happening with the discounters and other competitors. We have got to make sure our customers are getting the best value we can give them.”
Asda has suffered from a reputation of cheap – but bad quality – food, with 11.5 percent of readers surveyed in our Christmas supermarket survey saying that they strongly dislike Asda, which came second only to Iceland.