Asda, the UK supermarket owned by US giant Wal-Mart, has announced that in the first quarter of 2006 it will introduce price cuts of GBP102m in an attempt to undercut rivals. This augments the company's recent 'red hot value' promotion, which has cut the price of various products nationwide by GBP41m. 

Last year, the supermarket invested a record GBP361m into cutting prices and price reductions look set to shape the supermarket's business strategy in 2006 as well. Tony Page, executive director at Asda said: "We're putting our money firmly where our mouth is with this multi-million investment in prices. Shoppers should expect to see even more aggressive cuts throughout the year - this is just the beginning."