Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point

In Depth

On Air

Archive
Feedback
Low Graphics
Help

Monday, August 9, 1999 Published at 07:08 GMT 08:08 UK


Business: The Company File

Asda cuts herald Wal-Mart arrival

Asda is stepping up its price cutting strategy

US retailing giant Wal-Mart is being seen as the force behind Asda's decision to step up the price war among UK supermarkets.

Asda, taken over by Wal-Mart in June for 6.7bn, is slashing another 30m off prices.

The 600 price cuts, which will include 100 top brands on Asda shelves, are being seen as the latest signs of aggressive US-style supermarket pricing.

Rival chain and market leader Tesco has already cut its prices ahead of the long awaited arrival of Wal-Mart's knock-down price strategy in the UK.

Loyalty cards

The latest cuts are part of Asda's Rollback campaign, which has set a target of cutting prices on 4,000 products this year at a total cost of 200m.

The supermarket war between Asda, third in the league, and the two larger chains, Tesco and Sainsbury, comes as the entire supermarket industry's pricing is being investigated by the Competition Commission.

Asda's price cuts come two days after it said it was abandoning its pilot loyalty card scheme, following research which showed customers preferred lower prices to promotional schemes.

This decision marked a break with the trend, which has seen every other leading supermarket chain introduce loyalty card schemes.

The latest round of price cuts will be partly made up by abandoning the loyalty card scheme, which would have cost about 60m to extend to all its stores.





Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage |


The Company File Contents

Internet Links


Asda

Tesco

Sainsbury's

Safeway


The BBC is not responsible for the content of external internet sites.




In this section

Microsoft trial mediator welcomed

Vodafone takeover battle heats up

Christmas turkey strike vote

NatWest bid timetable frozen

France faces EU action over electricity

Pace enters US cable heartland

Mannesmann fights back

Storehouse splits up Mothercare and Bhs

The rapid rise of Vodafone

The hidden shopping bills

Europe's top net stock

Safeway faces cash demand probe

Mitchell intervenes to help shipyard

New factory creates 500 jobs

Drugs company announces 300 jobs

BT speeds internet access

ICL creates 1,000 UK jobs

National Power splits in two

NTT to slash workforce

Scoot links up with Vivendi

New freedom for Post Office

Insolvent firms to get breathing space

Airtours profits jump 12%

Freeserve shares surge

LVMH buys UK auction house

Rover - a car firm's troubles