Asda makes major change to 956 products and it will save shoppers money

Asda has stepped-up a supermarket price war by announcing a “major round” of savings on nearly 1,000 products.

Prices will be cut by an average of 6% across a host of product categories – with some slashed by more than third. The move is part of efforts by Asda to win customers from rivals after losing ground on competitors over recent years.

If other supermarkets join in, it could bring much needed savings for millions of shoppers, especially given a sharp rise in food price inflation across the market. The boss of Tesco, Ken Murphy, recently hinted at more intense price competition in the next six months.

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Leeds-based Asda said it was cutting the cost of 956 everyday grocery products both in-store and online, as part of its commitment to what it calls Asda Price. Items include pasta, cooking sauces, tea and coffee and are more mostly Asda own-label lines, rather than big brands.

Among the individual products being reduced are a 240 pack of Yorkshire Tea which will be reduced to the equivalent of 2p per teabag, or from £6.32 to £5 a box, and Asda Gravy Granules reduced from £1 to 69p.

A 392g can of Asda Chicken Tikka Masala and Asda Chicken Korma have been cut by almost 35%, from £2.40 to £1.57, and Asda Chicken Korma 392g. Asda Beef Stew in a Rich Gravy (392g) is down by 28.4% to £1.72.

Asda Instant Hot Chocolate (400g) is down by more than a fifth, from £2.40 to £1.87, and Asda Smooth Milk Chocolate Flavour Spread 400g is down from £2 to £1.57. The reductions include 49 products in its ‘Free From’ range, for those with food allergies or intolerances.

It comes as food price inflation reached 5% in September, and experts warnings it could go even higher in the months ahead, hitting the cost of the Christmas shop. Asda’s own Income Tracker found lower-income households are facing a weekly shortfall of £74 between their earnings and the cost of essential spending.

Rachel Eyre, Chief Customer Officer at Asda, said: “We understand the pressure families are under from rising living costs and we’re stepping up our support as we enter an expensive time of year for our customers.

“We’re cutting prices on the everyday products they rely on the most, helping them bring down their food bills and get even more value every time they shop with us. This is real support, where it counts. That’s Asda Price.”

Asda, under executive chairman Allan Leighton, is on a mission to turnaround a long-term fall in sales. Latest data from industry experts Kantar showed Asda's sales fell 2.7% in the three months to early September.

The chain's big stores paid no corporation tax last year as they plunged more than £830million into the red. Accounts show revenues slipped from £24.6billion to just under £23.8billion, but it dived from a £217million profit to a £834millon loss, mostly from an accounting adjustment linked to its investment in price cuts.