Asda cuts prices to attract more customers amid declining sales

In the United Kingdom, Asda has reintroduced its Rollback pricing strategy as a response to declining sales and customer numbers. The supermarket's sales dropped by 5.8% in the 12-week period leading up to December 29. In a bid to reverse this trend, Asda has reduced prices on more than 4,000 products both in-store and online by an average of 25%. This move comes as part of a broader turnaround strategy aimed at repositioning the brand and reinforcing its commitment to offering value for money. The decision to reinstate the Rollback pricing scheme reflects Asda's core mission of helping hardworking families save money. Allan Leighton, the returning CEO, emphasized that the reduction of prices is part of a plan to make Asda the cheapest traditional supermarket in the UK. The new campaign will also see fitness influencer Joe Wicks promoting the Rollback pricing to further emphasize the brand's value proposition and appeal to customers. Additionally, this price reduction initiative coincides with Asda discontinuing its price match scheme against competitors Aldi and Lidl just one year after it was launched. This discontinuation raises questions about Asda’s pricing strategies and the competitive landscape in the retail market. Asda aims to constantly update the Rollback offerings with thousands of new products throughout the year to create a new low pricing structure, termed as “Asda Price.” Overall, the Rollback promotion is set to include a wide range of items across various categories, ensuring that customers feel they are getting unbeatable value. The changes are part of Asda's effort to regain market share and reaffirm its brand identity amidst the challenges faced during the holiday shopping season. By realigning its pricing and marketing strategies, Asda hopes to attract a larger customer base and stabilize its financial standing moving forward.