Prices in Asda's clothing business will continue to be driven down as the retailer looks to build on the double digit sales growth it is currently enjoying. Andy Bond, md of the George operation, said: "Lower prices is a key part of the George strategy. Our customers demand value and we are passionate about delivering it. But we are not compromising on quality. We want to offer price plus." Asda aimed to achieve "Next and M&S quality at Matalan prices", he added. Bond said the launch in January of the Essentially George range of cut price basics had resulted in some dramatic volume gains. Sales of men's plain T-shirts, for instance, have gone from 100,000 to one million since the price was halved to £3. Some of the best deals ­ such as £5 sweatshirts ­ will be merchandised on gondola ends in food sections to encourage more customers to buy George clothes. Bond pointed out that while George was now a £600m business, only 13% of Asda's customers regularly bought its clothes. It is planning to extend the George range so it appeals to older consumers and teens, as well as introducing larger sizes to attract chubbier punters. The launch of new store concepts ­ such as supercentres and the small format supermarket being piloted in Bodmin ­ will also allow it to reach more shoppers. At the same time, Bond said George would be working closely with suppliers to improve instore availability over the next 18 months. Rival supermarket chains are stepping up their efforts to build sales of clothing. This week Tesco said former Arcadia boss John Hoerner would head its clothing business on a full time basis. Asda's Bond said: "I would not single out Tesco and Sainsbury as the only competitors we look at. The fact other supermarkets are moving into this area is just one dynamic." {{NEWS }}

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