By keeping prices down permanently with EDLP, Asda has encouraged shoppers to pursue a ‘just in time’ approach to shopping, buying as and when they need goods instead of stocking up on promotions, new research from TNS Superpanel has revealed.
Contrary to popular belief, Asda shoppers tended not to buy in bulk despite the chain’s high penetration of families, as they had confidence in prices staying down, said TNS Superpanel communications director Ed Garner.
Meanwhile rivals with more of a focus on multibuys encouraged more panic bulk-buying as shoppers feared prices would shoot up again, Garner added. “Asda shoppers trust prices to be low and perhaps, more importantly, stable and consequently there is little need to shop around.”
The research came as Asda announced a new £53m round of price cuts to be implemented over the next quarter. The cuts celebrate the fact that it has been named the country’s cheapest supermarket by The Grocer for seven years running.
Asda said its total investment in price cuts since it was taken over by Wal-Mart in 1999 would top £1bn by the year-end.
Tesco swiftly responded with a £50m investment in price cuts on fresh produce and healthy eating lines.

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