17:11 15 November 2013
Supermarket chain Asda, which recorded rather unimpressive sales for the third successive quarter is to launch £1 billion price-cutting plan to boost sales.
This move will help Asda close the gap with discounters such as Aldi and Lidl. Meanwhile, this will push it further below rivals Sainsbury’s, Tesco, and Morrisons on price.
Asda said: "The £1 billion price investment will enable the retailer to widen its price gap to the 'big three'.
Chief executive Andy Clarke said: "We regard ourselves as the UK's leading value retailer and it is against this backdrop that I have today set out our strategic priorities which will improve, extend and expand the business over the next five years."
"The market conditions are tough, competition is fierce and our customers' budgets are under intense pressure.
"We've continued to invest in lowering prices which has held them down for our customers while driving volume growth.
"This means we enter the crucial fourth quarter in a solid position."
"The investment will also close the price gap to the discounters."
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