Asda Christmas TV ad fires shot at Morrisons pricing and intensifies price war

  • Print
  • Share
  • Comment
  • Save

Asda pricing advert

Asda’s ad is sure to intensify the price war between it and Morrisons

Asda has fired a shot across Morrisons’ bows as the supermarket price war intensifies in the run up to Christmas.

The retailer aired a TV ad this week entitled ‘Spot the Difference’, which featured Bold 2in1 Gel Lavender & Camomile 888ml laundry detergent and compared the price of £6.40 at Morrisons with £4 at Asda.

With a voiceover of “enjoy a white, white Christmas, you could be better off at Asda”, the ad was launched after the price of Bold at Morrisons returned to £6.40 having been £4 for the previous five weeks. Asda, meanwhile, has been selling the detergent at £4 since dropping the price from £6.20 in mid-September (Brandview.com).

The decision by Asda to single out Morrisons in this way has been viewed by some analysts as a sign that it has become concerned by Morrisons’ recent deep discount strategy on a handful of key grocery lines - such as Christmas tins of Celebrations, Roses and Quality Street at two-for-£7 and bottles of Baileys for £9.

“While it is fair to surmise that there is strong national competition between the big four and increasingly with smaller rivals such as Waitrose and the discounters, there is still a strong degree of regionalism in the UK grocery sector,” said Kantar Retail’s Bryan Roberts. “Bearing this in mind, competitive actions by Morrisons will impact Asda given their geographic overlap. The Morrisons deals might well be luring shoppers away from Asda.”

Last week, the manager of Morrisons store in Netherfield, Max Baczynski, told The Grocer the new deals were “attracting new customers”.

In the latest Kantar Worldpanel data, Morrisons’ sales continued to show a recovery. They grew 1.5% in the 12 weeks to 10 November compared with growth of 0.8% at Asda.

Have your say

These comments have not been moderated.

You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment.

Any comment that violates these terms may be removed in its entirety as we do not edit comments.

If you wish to complain about a comment please use the “report this comment” facility or email groceremails@wrbm.com

Mandatory
Mandatory
Mandatory
Mandatory
  • Print
  • Share
  • Comment
  • Save
Sign in

Newsletter Sign-up

Free

I wish to receive the following newsletters:

For Members

Become a Gold Member to receive these newsletters:

Become a Finance Member to receive these newsletters:

Become a member of The Grocer

DIRECTORY

The+Grocer+Directory

CLICK HERE to search for the products, services and companies you need in the definitive guide to the UK food and drink industry.

FOLLOW THE GROCER

The Grocer's commentators and opinion makers