6th Sep 2018 16:03
LONDON (Alliance News) - Asda will abandon its price guarantee scheme from next month following other UK big four supermarket chains that scrapped similar deals, Reuters reported on Thursday.
The news agency said that the Walmart Inc-owned UK supermarket will scrap the scheme launched in 2010 that refunds shoppers the difference if the items they purchase are more expensive than in rival supermarkets.
Among the big four supermarket chains, both Tesco PLC and J Sainsbury PLC abandoned their price guarantee schemes.
Chief Customer Officer Andy Murray said: "Today, the Asda price guarantee while still the iron-clad promise it always was, has become less and less relevant to customers, with less than 1% of customers using it."
In April, Asda agreed a merger with rival Sainsbury's valuing the supermarket at around GBP7.30 billion, creating a retail powerhouse with combined revenue of GBP51 billion and a network of 2,800 stores.
UK supermarkets have been struggling to compete with German discounters Lidl and Aldi, which are increasingly gaining market share at 5.5% and 5.2% respectively.
According to the latest figures from Kantar Worldpanel, Asda's market share stands at 15.2%, while Sainsbury's is 15.5%. Tesco retained its title of biggest UK supermarket with a market share of 27.4%.
https://uk.reuters.com/article/uk-asda-prices/asda-calls-time-on-price-guarantee-scheme-idUKKCN1LM16I
Related Shares:
TescoSainsbury's