Walmart owned UK retailer Asda has confirmed today that its Asda Price Guarantee items will now be ten per cent instead of eight per cent cheaper than at its rival retailers.
Customers purchasing any of the 15,000 products which are part of the scheme, including 7,000 VAT-able goods, will now be able to claim a voucher for the ten per cent shortfall on any item they find cheaper elsewhere.
The new promotion, which will be advertised on TV and in print for the first time tomorrow, is a bold move in the face of the recent VAT rise and the rising inflation in goods.
Andy Clarke, CEO of Asda, commented: “At Asda, our customers place their trust in us to always have the lowest prices.
“But from today our price promise is backed by a copper-bottomed guarantee - if the basket of food you buy in our stores is not at least ten per cent cheaper than each of our major rivals, we’ll put our hand in our pocket and give you back the difference.”
Asda’s announcement comes after the United Nation’s Food and Agriculture Organisation (FAO) yesterday revealed that world food prices rose to their highest ever level in December.
The FAO Food Price Index rose to 215, higher than the previous record of 191 in 2008 when riots broke out across the world.
With other inflationary pressures likely to hit retail prices over the coming months, Asda’s price guarantee will be hard to maintain but also a welcome relief to many customers.
Clarke added: “The Asda Price Guarantee cuts through all the phoney claims and headline numbers, and shows when it comes to saving people money, we mean business this year.”