Asda has announced £40 million of price cuts as it looks to turn up the heat on its rivals.
The move comes on top of the £70m price made earlier this year and just days before its rival Morrisons completes its formal £3bn takeover of the 480-store Safeway chain.
Retail analysts said the move could be the first real sign of a full-scale grocery price war. Asda has said that the new price reductions were intended to mark the fifth anniversary of its Rollback price campaign and would cover all areas of the business.
Steve Gotham, a retail analyst at Verdict Research, said: “It is inevitable that the likes of Asda and Tesco will come up with spoiling tactics to try to prevent customers switching to Morrisons.”
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