Asda boss Allan Leighton is to launch the supermarket’s biggest Rollback price cuts campaign for years next week, as its returned former CEO seeks to spark a comeback for the struggling retailer.
The supermarket has seen its share come under intense pressure from the discounters and rival traditional retailers. It was the worst-performing supermarket over the Christmas period.
A major advertising campaign is being lined up by Asda to back the launch. It comes after its recent round of price cuts, in ‘the Big Jan Price Drop’, were mocked by Tesco boss Ken Murphy at the recent Tesco results call for failing to represent a genuine price war.
Leighton was brought in during November to take over at the Asda helm from fellow retail veteran Stuart Rose. He has announced that restoring Asda’s DNA, including bringing back the spirit of Asda price, is his number one priority.
Images shared on X by retail expert Steve Dresser today showed preparations in store for the campaign, which will run across the entire Asda range in store and online.
Last week Leighton said his turnaround plans would be based around moves to “satisfy the daily and weekly shopping needs of ordinary working people and their families, who demand value”.
Asda’s Big Jan Price Drop brought reductions of an average of 26% on products in-store and online, but Tesco boss Murphy said it was a “bold announcement” which “to me would not constitute a price war just yet”.
It came after last year Tesco stole Asda’s Grocer 33 crown for price for the first time since it was launched in 1997.
Asda has been running Rollback campaigns since the mid-1990s. While still under Walmart it announced a £100m investment in price in 2020, along with bringing back its Asda ‘Pocket Tap’ and the “That’s Asda Price” strapline.
Asda has not yet revealed details of how much investment will go into the latest round of price cuts, but analysts said it would be a huge test of TDR’s backing for Leighton and his turnaround.
No comments yet