// Asda cuts food prices in a further push to compete with discounters Aldi and Lidl
// The promotional pricing comes as Asda pledged to invest £100m in discounts and advertising
Asda has reportedly slashed food prices as it seeks an overhaul for its product ranges, following the sale to billionaire Issa brothers.
The Big 4 grocer slashed the prices of some ranges including desserts and baking products, with more cuts expected to be introduced as early as next week, The Telegraph reported.
The promotional pricing initiative comes as Asda pledged to invest £100 million in discounts and advertising, following the price wars between grocers.
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The Issa brothers, backed by private equity firm TDR Capital, are seeking to lower prices in an effort to battle German discounters Aldi and Lidl.
An Asda supplier said they were expecting extra price cuts as Issa brothers Mohsin and Zuber “try to save some money somewhere”.
This could mean that food producers could be squeezed further.
Meanwhile, Asda said the new initiative to cut prices has been in the making for the last 12 months and category transformation is a key component of its discount platform strategy.
The brothers will wait until next month to stamp their mark on Asda as the CMA has set an April 20 deadline for a preliminary decision on the deal.
The Issa brother’s company EG Group’s £750 million deal to buy Asda’s forecourts must be approved by the competition watchdog, as they own petrol stations, which are close to Asda supermarkets.