Asda slashes cost of 3,000 products
Supermarket Asda has fired the latest shots in an escalating price war between the country's biggest grocers with a pledge to slash the cost of 3,000 products.
The country's second biggest supermarket will also launch a £5 "thank you" voucher for every customer who spends £40 in the store during the week starting on Monday to redeem off their next £40 shop.
The voucher, which can also be claimed after a £40 online shop, and lower prices come after Tesco launched its own £500 million price-cutting campaign and Sainsbury's unveiled its Brand Match scheme.
Asda earlier in the year launched its Asda Price Guarantee, in which the grocer offers a refund if the bill is not 10% cheaper than its rivals, which will continue alongside its latest initiative.
A spokesman for Asda, which is owned by US giant Walmart, said: "Other stores don't want a price war, they only want a skirmish over price perception. There is no price war because no other stores showed up to win."
Asda's price cuts are on items such as bread, butter, cereal, cupboard essentials, toilet tissue, laundry powder and fruit - including the lowest priced bananas at 52p per kilo.
At the end of last month, Tesco cut the prices of 3,000 everyday items, which it will cover by slashing the number of multi-buy promotions and scrapping its double Clubcard points reward offer, meaning the scheme will revert to one point for every pound spent.
The move came just before Tesco revealed its worst sales performance in two decades with sales excluding new store space, VAT and petrol down 0.9% in the three months to August 27.
The top four - which also includes Morrisons - have faced increased competition by cheaper rivals such as Aldi and Lidl in the last three months as household incomes came under further pressure.
Tesco lost market share and Asda remained stagnant in the 12 weeks to October 2, while discount-focused retailers Aldi, Lidl and Iceland all increased their hold.