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Asda's new boss cuts cost of thousands of groceries in supermarket price war

Published 09/09/2016

Asda in Chelmsford, Essex
Asda in Chelmsford, Essex

Asda has fired the latest salvo in the supermarket price war, with new boss Sean Clarke moving to slash the prices of everyday items as he attempts to arrest falling sales at the grocery giant.

The Walmart-owned company said that it will lower thousands of prices on every day favourites by an average of 15%, with items such as beef, chicken and sausages all becoming cheaper.

Mr Clarke said: "This week we're taking the next step in our journey to deliver better value for our customers and to improve quality.

"We will continue to listen to our customers and take action, with better prices for products they buy week in, week out."

The move, part of a new value campaign dubbed "That's Better", will also see Asda improve the quality of its own-brand ranges.

It comes after Asda laid bare the challenge it faces in August, when it reported its worst quarterly performance on record. The chain posted a 7.5% fall in like-for-like sales in the second quarter.

Mr Clarke, who took up the reins on July 11 after being parachuted in to replace previous boss Andy Clarke, is attempting to turn Asda around amid a brutal price war in the supermarket sector.

Asda, Tesco, Morrisons and Sainsbury's are attempting to fend off the challenge from German upstarts Aldi and Lidl, which have both taken market share from the so-called Big Four.

Morrisons announced on Sunday that it will slash selected meat and poultry prices by 12%. The move marks the Bradford-based company's second post-Brexit price reduction after cutting prices on more than 1,000 products by an average of 18% at the start of August.

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