The City roundup video: Asda and the supermarket price wars

Video: Jamie Dunkley provides a run-down of the day's major news from the City

An Asda supermarket store logo is pictured in Halifax, in West Yorkshire, in northern England, 23 January 2007. (PAUL BARKER | AFP | Getty Images)

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Supermarket price wars may be great for customers but they’re a nightmare for the companies involved who are forced to slash the price of goods just to keep

Up until now, Tesco and Morrison’s have been hit the hardest hit with Asda arguably the most resilient among the big four grocers - the other being Sainsbury’s of course.

Asda boss Andy Clarke was today forced to admit that a “new reality is upon us” as the company saw sales fall 1.6% in the third quarter, its first significant slump since war was declared earlier this year.

It comes just a day after his counterpart at Sainsbury’s Mike Coupe set out his strategy to invest £150 million in slashing prices.

Having already cut costs and revamped it stores, today’s results show that Asda is now well and truly embroiled in the fight.

With Aldi and Lidl taking market share, the bum-tapping retail giant faces a testing few weeks in the led up to Christmas, retail’s golden quarter.