Supermarket giant Asda has launched a dramatic new price offensive, vowing to undercut its main rivals' loyalty card prices on thousands of essential items. The move comes as the grocer seeks to recover from a severe slump in sales over the crucial festive period.
A New Price Promise for Shoppers
Asda announced on Thursday 8 January 2026 that it has significantly strengthened its 'Asda Price Promise'. The retailer now pledges that the cost of thousands of household staples will be lower than the loyalty card prices offered by competitors Tesco, Sainsbury's, and Morrisons.
The supermarket stated that this initiative covers over 2,300 everyday products, including fresh meat, fruit and vegetables, chilled items, core grocery lines, and bakery goods. The aim is to provide clear and consistent value to all customers, regardless of whether they are signed up to a loyalty scheme.
Responding to a Bleak Christmas Performance
This aggressive pricing strategy follows a deeply disappointing Christmas for Asda. According to data from analysts Worldpanel, the chain's market share fell to a new low of 11.4% in the 12 weeks leading up to 28 December.
Sales at the grocer tumbled by 4.2% during this period, making Asda the only major supermarket to suffer a drop in sales over the festive season. This marked its 22nd consecutive month of decline, with rivals Tesco and Sainsbury's successfully widening their lead over Britain's third-largest supermarket.
Simplifying Value for Families
Asda's chief customer officer, Rachel Eyre, explained the thinking behind the move. "We know many families are feeling the pinch post-Christmas and it can be difficult to get household budgets back on track," she said.
"We want to help by giving them the lowest prices on the products they buy the most. Asda Price means great value with clear and consistent pricing which is available to everyone without the need for a loyalty card."
Interestingly, Asda continues to operate its own rewards programme, Asda Rewards, which gives customers 10% back on fresh produce bought in-store. However, the new Price Promise is positioned as a universal offer, eliminating the need for shoppers to juggle multiple loyalty schemes or wait for specific promotions.
The announcement intensifies the ongoing supermarket price war. It came in the same week that Tesco promised to keep the cost of 3,000 branded products "consistently low" as part of its new Everyday Low Prices campaign, highlighting the fierce competition for cash-strapped consumers.
