Blog: Asda price guarantee – image rather than substance?
Michelle Russell | 28 April 2010
UK retailer Morrisons has hit back at Asda’s "cast-iron promise" that insists consumers will not find their shopping cheaper elsewhere, labelling it a “stunt”.
The Wal-Mart arm launched the Asda Price Guarantee yesterday (27 April), which will see the retailer refund the difference - plus a penny - if consumers find they could have paid less at Tesco, Sainsbury’s and Morrisons.
But while Tesco sought to merely emphasis its Clubcard scheme, and Sainsbury’s insisted that its customer shop at their stores for “fair prices”, Morrisons has been far more robust in its reaction.
Martyn Jones, Morrisons group trading director, insisted: “It is not achievable to ever fully price match us and that anyone could ‘at best’ only match a third of our prices, as we don’t publish our prices on-line. We would also question the ability to be accurate about an on-line price-matching claim or to try to match the quality, value and service that we provide.”
He added that, rather than “relying on stunts” to attract shoppers, Morrisons gives customers “all round great value with exciting, deep-cut offers which benefit more shoppers, more often”.
Shore Capital analyst Clive Black questioned whether shoppers will have the time or inclination to ‘price match’.
“This step by Asda is interesting and maybe meaningful although how many people are going to go online after 9am to import their retail receipt online to possibly gain some low value vouchers is a big question to us; surely life is too short,” Black said.
Despite Asda's bluster, the jury is out over whether its rivals will be quaking in their boots just yet.
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