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.


BLOG

Barilla puts sustainability centre stage

Barilla's 2016 results statement, published last week, makes interesting reading, not because of the Italian food group's commercial performance, but for the emphasis placed on sustainability achievem...

BLOG

UK M&A deal volumes slide in early months of 2017

Fresh data from Grant Thornton indicates the number of mergers and acquisitions in the UK food and drink sector fell to the lowest level for over two years in the first quarter of in 2017 - but the ac...

BLOG

Food policy returns to focus in Westminster

Amid the political turmoil in the UK caused by the EU Referendum, the resignation of a Prime Minister, subsequent burning debates over the Brexit “divorce” settlement and now by the surprise announcem...

BLOG

Danone closes WhiteWave, who will acquire Stonyfield?

Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...

just-food homepage



Forgot your password?