Supermarket giant Asda has launched an aggressive new price offensive, pledging to keep the cost of more than 2,300 everyday products lower than the loyalty card prices offered by its main rivals. The move comes as the retailer seeks to regain ground after a disappointing festive trading period.
A Direct Challenge to Competitors
The new 'Asda Price' guarantee means items across fresh meat, fruit and vegetables, chilled foods, core grocery lines, and bakery goods will now be cheaper than equivalent prices for club card holders at Tesco, Sainsbury's, and Morrisons. Rachel Eyre, Asda's Chief Customer Officer, stated the initiative is designed to provide clear and consistent value to all shoppers, regardless of whether they hold a loyalty card.
"We know many families are feeling the pinch post-Christmas and it can be difficult to get household budgets back on track," Eyre said. "We want to help by giving them the lowest prices on the products they buy the most."
January Boost with Asda Rewards
In a further incentive to draw shoppers into stores, Asda has also revealed a special promotion for its Asda Rewards scheme. Throughout January 2026, customers will receive 10% back in their Asda Rewards Cashpot on all fresh produce purchased in-store. This offer provides an additional saving on top of the newly reduced prices.
Pressure After a Tough Christmas
This significant pricing strategy follows a challenging Christmas for the UK's third-largest supermarket. According to data from analysts Worldpanel, Asda's market share fell to 11.4% in the 12 weeks leading up to December 28th. Sales declined by 4.2% during this period, making Asda the only major grocer to suffer a drop over Christmas and marking its 22nd consecutive month of decline.
Meanwhile, rivals Tesco and Sainsbury's strengthened their positions, widening the gap with Asda. Notably, Tesco just this week announced its own 'Everyday Low Prices' campaign, promising consistent low prices on 3,000 branded items, highlighting the intense competition in the sector.
Examples of the new Asda Price cuts include:
- Pampers Baby Dry Size 3 Essential Pack (50): £6 (Asda) vs £11 (nearest competitor)
- Philadelphia Original Soft Cream Cheese (165g): £1 vs £1.35
- Warburtons Tiger Bread Bloomer (600g): £1.40 vs £1.65
- Ariel The Big One PODS, Original (21pk): £6 vs £12
- Nestle Cheerios Multigrain (800g): £3 vs £3.80
The breadth of the price cuts, from nappies and detergent to cheese and cereal, demonstrates Asda's attempt to win back customers by targeting a wide range of essential household spending.
