Magazine article Marketing

Asda Cuts Prices and Brands Cheap Chain

Magazine article Marketing

Asda Cuts Prices and Brands Cheap Chain

Article excerpt

Asda this week pledged to lift the supermarket price war to a new plane after average across-the-board price cuts of 3%-4%. The promise of further cuts coincides with a move to use the Asda name to brand a new series of discount stores.

The 206-strong chain - which made a 69m [pounds] six-month loss to November 1991 - is to intensify a price drive which will take it to average price parity with discounter Kwik Save.

New chief executive Archie Norman's "back to basics" strategy will also entail a culling of both Asda own-labelaand the space given to non-food.

"If we don't do anything in three years," Norman is believed to have told analysts, "we are finished".

Asda now claims to be 3%-4% cheaper than Tesco and Sainsbury's. "And we certainly expect to be able to become more competitive," says corporate affairs director Paul Dowling.

Asda will also test two "distinctly different" discount formats this year - one this summer, the other in the autumn. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.