Asda has warned it will have to put prices up due to the Budget, which it said will mean £100 million in extra costs.
Stuart Rose, chairman, said it was “A big burden for business to carry”
“We are a very efficient industry, as retailers. We will do everything we can to mitigate this cost.
“But of course, you can’t deny it will probably be inflationary to some degree."
Chancellor Rachel Reeves announced a £25.7 billion raise in employers’ national insurance contributions as a key part of her fundraising plans but businesses have warned it will also mean a hefty cost increase.
Sainsbury’s warned costs would rise by £140 million while Marks & Spencer pointed to £60 million in extra tax
Asda had already been struggling to hold its share of the UK grocery market and reported a 2.5% decline in third-quarter revenues to £5.3 billion,
Rose said: “We’ve slightly lost the plot in terms of giving (customers) what they want on a daily basis.
“If you go and look at our stores, they’re not as nice as I’d like them to be in terms of the experience and the visuals.
“They’re not as good as they should be in terms of the service we give our customers on availability, and we’ve probably lost a bit of sharpness on price.”
Asda is looking for a new chief executive following the reduced involvement of Moshin Issa who alongside his brother Zuber bought the supermarket chain with the backing of TDR Capital.
Figures from market researcher Kantar this week showed Asda’s market share down at 12.6% in the 12 weeks to September, against 13.8% previously.