Subscriber login Close [x]
remember me
You are not logged in.

Asda to spark price war

Published:  23 July, 2008

Asda chief executive Andy Bond said the supermarket is likely to instigate a renewed price war in the wake of the economic slowdown.

Bond has committed Asda, which is owned by the world's largest retailer Wal-Mart Stores to be "even more aggressive lowering prices" in anticipation of what he expects will be a tough year for British consumers.

"I'm concerned for customers. I think they will be under pressure this year," he said at a press briefing.

"Today, more than ever, we need to sharpen our pencil on prices. We are not going to squeeze suppliers but we have a responsibility to keep our prices as low as we can."

Bond said it was "right and proper" for Asda to challenge suppliers to "look first at their own costs before they pass them on to customers".

"We're not hearing enough people talk about our obligations to keep prices low and put the customer first. It is our right and obligation to stand up for customers and ask suppliers to concentrate on their own cost base," he said.

However, he said there has been no blanket 'price freeze' imposed on suppliers.

"We're not doing anything unilaterally. We will work with them to say what we can do to keep costs down and what they can do," he said.

Asda has embarked on a new TV advertising campaign aimed at emphasising its value credentials to shoppers and Bond claimed the group will do whatever is necessary to maintain its price position.