Asda to spend £500m lowering prices
The Walmart-owned retailer have said that they're going to spend £500 million to lower prices at their stores, which is good news if you don't mind shopping at Asda. This is on top of the £1 billion they said they'd be spending in November 2013, when they said they'd be dropping prices over the following five years.
"We must take radical action to win back our customers," said the chief executive Andy Clarke. "We expect that 2016 will be another year of intense pressure at a macroeconomic level, in addition to sales remaining under strain from price deflation, a continued competitive background throughout the sector, and radically changing customer shopping habits."
That's a lot of business-speak right there, but basically, Asda are saying that things are going to be cheaper, soon. Whether they'll be as cheap as some of their rivals remains to be seen.
They need to do something though, because of all the leading supermarkets in Britain last year, Asda performed the worst. Their management decided to try and protect profit margins, rather than go after top-line sales. Either way, the way people shop in the UK has changed from 10 years ago, and Asda need to get their finger out.
The retail options are greater now, so they better get shipshape, and fast.