Asda is due to axe its Price Guarantee scheme after nearly a decade next month as the official probe into its proposed merger with Sainsbury’s goes ahead.
The Asda Price Guarantee (APG), launched in 2010, promised customers that if their prices weren’t 10 per cent cheaper than its rivals it would refund them the difference.
According to the grocer less than one per cent of customers currently engage with the scheme thanks to an “unrelenting” change in retail, and it will therefore scrap the scheme entirely.
In its stead, Asda has said it will focus on investment of lowering its prices across its entire product range.
“It’s a decision we’ve not taken lightly because we love it dearly, but in reality, we know our customers don’t love it enough for us to keep it,” chief customer officer Andy Murray said in a statement on the retailer’s site.
“Instead they want us to focus our investment on lowering our prices, and they’ll let us know if we’re falling out of step with the competition.
“Over the past 12 months we have invested over £100m in lowering the price of thousands of the products our customers love the most. And there’s more to come.”
The scheme will continue to operate as normal until October 3, and customers can still redeem their vouchers for 28 days from the date they receive them.
The Competition and Markets Authority officially launched its investigation into the proposed merger between Asda and its larger rival Sainsbury’s last month.
Although it has been speculated that up to 300 stores could close between the two retailers if the merger is approved, Sainsbury’s boss Mike Coupe said the new entity would lead to £500 million in cost savings and further investment to lower prices by around 10 per cent on everyday items.