Wal-Mart's Asda price scheme draws flak from rivals

Refusing to withdraw its controversial price guarantee, UK retailer Asda's chief executive, has sent out a defiant message to the retail chain's bigger rivals who have been incensed by the scheme.

According to Andy Clarke, the Asda Price Guarantee, which promises that on a basket of comparable groceries the Wal-Mart-owned grocer would be 10 per cent cheaper than the four of its big rivals, has helped it to "outperform" the market and deliver like-for-like sales up 1.6 per cent, apart from fuel, in its fourth quarter. The bigger rivals include Tesco, Sainsbury's, Morrisons and Waitrose.

The retailer's price guarantee was introduced in April and has triggered a controversy, as the big grocers are engaged in a fierce battle to grab each pound from hard-pressed consumers.

However, Clarke stepped up the pressure by indicating that,  with the relaunch of the scheme in early January, it (the guarantee) was there to stay.

He said Asda had not put an end date on it. He added if customers continued to tell the company that they enjoyed seeing the difference and the retailer was growing its business because of it, why he would change it. He added that the Asda Price Guarantee had proved to be a game changer.

The latest version of the guarantee allows shoppers a refund of £10 if they find their £100 basket is the same price at Tesco, Sainsbury's, Morrisons and Waitrose across nearly 15,000 grocery items listed by Mysupermarket.co.uk, the price comparison website.