Forget buy one get one free – welcome to the year of 50p
Today Asda is slashing the price of many of its products to just 50p, as part of its £50m price overhaul. It’s the only way they can begin to compete with the likes of Aldi and Lidl, where it’s possible to buy a week’s shopping, get the children’s winter coats and furnish your home (with strange off brand crisp boxes and 12 litre bottles of Lenor) for a tenner.
With budget supermarkets and the ever growing retail boil that is Poundland stealing their thunder, in 2014 the big supermarkets know they’ve got a fight on their hands. Asda’s price cuts are a concerted attempt to undercut the rise of the budget chains (‘We’re making the pound shop and Aldi look more expensive,’ gloated Asda’s food merchandising officer Barry Williams.)
If you’re looking for a New Year bargain, at the moment porridge, Dairylea triangles, Frijj milkshake, cabbage and Weight Watchers soup (MMMMM!) are are all sitting at 50p. Walmart, who own Asda, say these cuts are only the beginning of a larger set of reductions later in the year.
Not to be outdone, Tesco are vowing to match the reduced prices with their Price Promise Scheme, and have been saying soothing things about how customers want cheaper products after Christmas.
But how low can you go, before everything you offer just ends up being a heap of unwanted crap? Of course, the real problem is inflation, and no amount of 50p cabbages is going to take the edge off that.