Asda’s “cast-iron promise” that consumers will not find their shopping cheaper elsewhere is likely to “add to nerves”, a leading retail analyst said today (28 April).
The UK retailer yesterday (27 April) launched the Asda Price Guarantee, 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.
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However, Keith Bowman, analyst for Hargreaves Lansdown, believes the move may be a result of Asda “taking its eye off the ball”.
“Recent market share figures show Asda is losing ground slightly, which suggests they may have taken their eye of the ball a little and they needed to address that,” Bowman told just-food.
He added: “This move may suggest they have now re-focused on that, and that is not to be dismissed.”
Asda has laid down the gauntlet to its rivals as the latest data from Kantar Worldpanel showed the UK’s second-largest retailer was losing market share.
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By GlobalDataIn the 12 weeks to 18 April, Asda grew sales by 2.5% and saw its share of UK grocery sales dip from 17% to 16.9%, Kantar said.
However, a spokesperson for Sainsbury’s insisted that its customer shop at their stores for “fair prices”.
“People lead very busy lives and not everyone has constant access to the internet, so we check prices constantly and reductions are made in our stores so that all our customers can benefit equally from our competitive pricing when they shop with us,” the spokesperson said.
Tesco, on the other hand, sought to emphasis its Clubcard scheme, adding: “Customers love the simplicity of Clubcard. A million more customers have signed up since the introduction of Double Clubcard Points.”
