Asda slashes staple food prices

Friday, 02 January 2009

Asda has cut the price of 1,000 staple food and personal care items, with some products available for £1 from today as part of a new discounting promotion.

The supermarket said the price cuts will apply to products including frozen foods and baked goods, although these might vary at different times.

Foods slashed to £1 in the credit crunch drive include Walls sausages, Birds Eye Simply Cod fillets and some Mexican ready meals, Asda said.

Additionally, leading wines are available in three-for-£10 deals, while the same promotion applies to selected joints of meat. Deodorants and shampoo can be bought for £1.

Earlier this week, the firm revealed that sales in the week up to Christmas beat its own expectations and it saw its busiest day ever on 23 December.

Chief executive Andy Bond said: "2009 is going to be a very difficult year and I believe we have an obligation to help our customers through these tough times.

"They want to know that when they spend their hard-earned cash they are getting real value for money and not just a gimmicky price promotion.

"No longer can retailers claim they are investing hundreds of millions of pounds in lowering prices and not provide hard evidence as to how and for how long."

The supermarket said the cuts will be funded by money saved from reducing packaging waste and from using fewer carrier bags.

Asda's price cuts come after competitor Tesco launched a giant sale on Boxing Day, itself lowering the cost of 1,000 products.

The Federation of Small Businesses this week said many smaller firms could go out of business as the recession takes more victims in the next 12 months.