Asda has followed rival major supermarkets Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) in announcing cuts to bring many product prices in line with those seen at Aldi and Lidl.
Some 287 products will be cut in price by an average of 17%, Asda announced on Friday, “to match whichever discounter has the lowest price on these products”.
Both Tesco and Sainsbury’s already offer so-called ‘Aldi price match’ deals, with Kantar earlier this week explaining that the German discounters had enjoyed the strongest sales growth among UK supermarkets in the run-up to Christmas.
Alongside this, sales of cheaper own-branded products rocketed compared to labelled-goods, continuing a trend of shoppers searching for better deals as budgets remain squeezed.
“[Aldi and Lidl] have intensified price competition in the UK, prompting other supermarkets to offer discounts and promotions and think of innovative ways to drive customer demand,” Hargreaves Lansdown analyst Susannah Streeter explained.
Both Tesco and Sainsbury’s are due to report on their respective third-quarter performances next week, with the latter in particular having invested heavily in bringing prices down in recent years.
Milk, bread, cheese, tea and coffee, alongside fresh meat, fruit and vegetables will be included in Asda’s discounter price match, the UK’s third-largest supermarket added.
“We understand we have an important role to play in local communities to help families get the most from their budgets,” chief customer officer David Hills commented.
“We have launched Aldi and Lidl price match to help them save both time and money.”