Supermarket giant Asda has launched a radical overhaul of its stores, removing more than 4,000 product lines from its shelves in a high-stakes attempt to lure customers back with lower prices.
A Drastic Simplification Strategy
The Leeds-based retailer is undertaking what it calls a major "simplification" of its operations. This gamble involves dramatically reducing customer choice by cutting thousands of Stock Keeping Units (SKUs), ranging from everyday essentials to more niche items. The goal is to eventually remove up to 5,000 products or more.
According to Asda, this sweeping change is designed to streamline the supply chain, reduce waste, and boost sales volumes on key lines. Chairman Allan Leighton has stated that trimming the range will simplify the shopping experience for customers.
Battling Declining Sales in a Fierce Price War
The drastic measures come as Asda faces significant challenges. The latest industry data reveals the supermarket suffered a 4.3% drop in sales over the 12 weeks leading to November, making it the only major grocer to see revenues fall heading into the crucial Christmas trading period.
This decline is happening amidst a fierce price war among UK supermarkets. Recent Office for National Statistics data showed food inflation easing from 4.9% in October to 4.2% in November, partly due to this intense competition. Rivals like Aldi and Lidl have recently promoted a Christmas dinner for eight for just £11.85, piling pressure on traditional chains.
Aggressive Price Cuts and Market Pressures
In a bid to reclaim market share, Asda has relied heavily on aggressive price reductions throughout 2025. It revived its famous "Rollback" campaign, cutting prices on thousands of items by up to 25%, and promised deeper discounts on fresh produce and branded goods.
However, industry analysts note that competitors have often matched or beaten these offers, making Asda's moves seem less transformative and more reactive. Experts suggest shoppers are increasingly turning to Tesco, Aldi, and Lidl for better value, leaving Asda scrambling.
An Asda spokesperson commented: "One of the key pillars of our formula for growth is to be ranged in a way that is simple for the customer, removes complexity on our shelves and in our supply chain, and drives volume growth in key lines."
Despite the stated benefits, suppliers and market watchers warn the strategy carries risk. Offering fewer choices during a cost-of-living crisis, when every pound counts, could backfire, potentially driving customers to stores with greater variety. The success of Asda's bold shelf shake-up now hinges on whether shoppers prioritise lower prices over extensive choice.
