Asda has laid out plans to reduce promotions and return to an Every Day Low Pricing strategy.

Announcing full year like-for-like sales excluding fuel up 6%, and fourth quarter sales up 4.6%, chief executive Andy Bond said Asda had allowed itself to "become too promotional" last year and the focus for 2010 would be "sucking out the promotional money on offer from our suppliers" in order to "invest all of it in lowering prices across the board".

The number of promotions has increased 78.1% at Asda in the past year, according to Assosia.

Bond also said Asda would open more small supermarkets. The retailer has 21 stores under 25,000 sq ft and Asda has now created a separate division to concentrate on growing the format.

JP Morgan analysts claimed in a note that Asda believed 25% of growth in the UK would come from big stores, and 75% would come from small stores, online and non-food.

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