Asda's 50p price cuts are rather suspect
Remember back at the beginning of January, when Asda claimed it would take on the Lidls and Aldis of this world by slashing all its prices to 50p? WELL, they did, but…*shuffles feet* what they didn’t fully explain is that they bumped up prices in October 2013 to compensate for this fake New Year altruism.
Independent researchers from the Grocer magazine found that prices on 120 or so products had been inflated ten weeks before, so the net result is that Asda shoppers really aren’t saving very much at all. For example, on October 30th, a 50p Pot Noodle went up to a pound, before being cut back to 50p at New Year. And Oreos, which were 50p, suddenly skyrocketed to £1.08, before going back to 50p on January 1st.
And when they introduced price cuts in January, talking loudly about competing with the budget supermarkets, they cut 246 products to 50p – however, now, only a few weeks later, 57 of these lines have now crept up to full price.
Unless you buy the same products week in week out, this kind of backhanded price shuffling is not the sort of thing you’re really going to notice as you browse your local megamart. And don’t the big supermarkets know it.
Brian Roberts, retail analyst at Kantar, said:
'This type of strategy - of raising prices to make a promotion look more lucrative - is commonplace among all the supermarkets. But it is not necessarily the right thing to do and Asda is not being as transparent as it could with its shoppers.’
So basically, Asda are telling porkie pies (50p) and should clean up their act (with Dettol – 50p). Either that or you could just do what half of Britain is doing anyway, and go to Aldi and Lidl instead.