Asda Cuts Prices by Up to 45% Amid Supermarket Price War

Asda has embarked on a significant price war, slashing the prices of over 1,500 products, including popular family items and fuel, in an effort to regain market share lost to competitors like Tesco and Sainsbury's. The price cuts, which reach up to 45%, are part of a broader strategy announced by Asda's chairman, Allan Leighton, who aims to make the supermarket 'incredibly competitive' again. This aggressive pricing strategy has already resulted in a £4 billion loss for other major supermarkets, with Tesco's shares dropping over 12% and Sainsbury's down by 8.5%, as investors react to the potential for intense price competition. Asda's market share has decreased from 14.6% in 2021 to 12.6% today, prompting a renewed focus on attracting budget-conscious shoppers. Leighton has promised that this will be the largest investment in pricing since his first tenure, indicating a return to Asda's roots as a price leader. The company is also implementing a 4p per litre cut on petrol and diesel, further enhancing its competitive edge in the grocery sector.