Rivals dismiss Asda's price promise as a 'gimmick'
A supermarket price war is looming after Asda promised to be 10 per cent cheaper than rivals.
Britain's second-biggest supermarket said it would give any customer who could find cheaper goods elsewhere a £10 voucher.
Asda hopes the promotion will increase its share of the fiercely competitive UK grocery market, which stayed flat at 17 per cent last year while the shares of Britain's biggest store chain, Tesco, and the third-biggest, Sainsbury's, rose.
The price promise builds on Asda's original price guarantee announced in April last year, which offered to refund customers the difference between products bought at its stores and those from cheaper rivals plus 1p.
Under the new deal, shoppers would therefore be refunded £10 if they found their £100 basket for the same price anywhere else. Customers who found their £100 Asda basket for £95 elsewhere would receive 10 per cent of £95 plus the original £5 difference – a total of £14.50.
Shoppers can check for refunds by tapping their receipt details into the Asda website the day after shopping to find out how much their basket would have cost elsewhere.
Asda said the guarantee would cover all of the 15,000 products listed on the MySupermarket price comparison site, including around 7,000 items subject to VAT. Its chief executive, Andy Clarke, said: "The Asda Price Guarantee cuts through all the phoney claims and headline numbers, and shows when it comes to saving people money, we mean business this year."
Tesco accused the US-owned supermarket of making "rubbish" claims, while Morrisons said its low prices did not rely on "gimmicks".
A Tesco spokesman said: "A direct comparison taken on Tuesday of the best prices on the 100 top-selling matched lines shows that Tesco is 5 per cent cheaper." Richard Hodgson, Morrisons' commercial director, said: "Unlike Asda, we're not in the business of gimmicks and stunts."
Supermarket chains constantly bicker over which has the cheapest prices. This week the Advertising Standards Authority upheld a complaint from Sainsbury's that Asda misled the public by stating in an advertisement for a toy sale that "everything is at least half price!" when only some toys were 50 per cent off.
But Asda regularly comes out cheapest in a weekly survey of 33 common items such as milk, apples and rice carried out by The Grocer magazine.
Britain First criticised for using actress's memory to draw attention to their 'hate-filled home page'
Emergency call 'started off dumb, but got pretty serious'
Greatest mystery about the hit BBC1 show is how it continues to be made at all, writes Grace Dent
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Axe wielding man shot dead after attacking four New York policemen on busy street
- 3 Watch what happened when food critics were unknowingly served McDonald's
- 4 Jimmy Carr's Oscar Pistorius joke goes a bit too far at the Q Awards
- 5 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
Renee Zellweger on plastic surgery rumours: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
This 'woman calls police to order pizza' story isn't going where you're expecting
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Axe wielding man shot dead after attacking four New York policemen on busy street
Diwali: What is the festival of lights – and how is it celebrated around the world?
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
iJobs Money & Business
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...
£30000 - £35000 Per Annum plus excellent benefits: Clearwater People Solutions...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...