26th Feb 2014 06:55
LONDON (Alliance News) - Tesco PLC fired the opening salvo in a new supermarket price war Tuesday as it announced a multimillion-pound investment in price cuts, but big rival Asda immediately hit back, The Times reports Wednesday.
Britain?s biggest supermarket was also forced to concede publicly that it had scrapped a key profit target, set in the wake of a profit warning two years ago, in a wide-ranging update to the City aimed at reassuring investors on the turnaround of its British business, the paper said.
In the latest attempt by the big supermarkets to combat the emergence of the discounters, Tesco said that it would spend more than GBP200 million lowering prices. However, in an effort to undermine its rival?s crucial presentation at the London Stock Exchange, Asda said ? ahead of the Tesco announcement ? that it would add GBP100 million to its planned GBP200 million price cuts this year, The Times added.
http://www.thetimes.co.uk/tto/business/industries/retailing/article4015771.ece
By Steve McGrath; [email protected]; @SteveMcGrath1
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