It has launched an Extra Special bathroom range and plans to extend Extra Special across a spectrum of home décor items over the next six months, taking on premium high street competitors.
A spokesman said the label had proved successful in grocery, and now Asda was bringing every day low prices to quality homewares.
The first products to launch as part of the new collection include Extra Special Egyptian pure cotton towels and soap stone accessories.
Bedding, lighting, candles and soft furnishings are likely to be added by the end of the year.
Asda claimed that prices would be up to 65% less than high street competitors’ on similar products.
Tesco launched its Finest brand on homewares and clothing last year.