period was just 0.79% more expensive than Asda’s at £169.36. Tesco actually provided the cheapest average 100-item basket for the period October 3 to November 7.
But Asda is responding. And this week it cut the cost of the basket of 100 grocery lines to £166.98, which made it £1.93 cheaper than Tesco’s basket.
In The Grocer 33 shopping survey, meanwhile, Asda has been the cheapest supermarket for 19 of the past 27 shops.
Results from The Grocer 100 also show that Sainsbury and Morrisons are also taking down prices and adding to the deflationary climate in food retail.
Sainsbury was just 2.65% more expensive than Asda on average in the past six months, while Morrisons was 2.1% more expensive on average than Asda during the same period.
Asda president Andy Bond this week admitted that rivals had been closing the price gap.
But Bond said the business was committed to remaining the country’s best value retailer: “The Asda brand has always been about the lowest priced retailer and I’m going to be more aggressive next year.”
And he warned that Asda would improve further its buying terms: “We are going to collaborate with suppliers to get better prices on the table. But we’re not going to get a club out and beat people over the head.”
Bond also pledged to raise instore standards and service.
>>p22 The Grocer 33 Review of the Year
Mind the gap: Tesco closes in on Asda