British supermarket chain ASDA Group plc said yesterday it will reduce its prices over the next 18 months to match those of its US owner Wal-Mart Stores.
Prices on 10,000 products will be cut by around 5-10 per cent, a spokeswoman for the company said.
"Currently we are between 510 per cent cheaper than our UK competitors and in 18 months we will be between 1015 per cent cheaper," she said.
"We have already started moving in this direction with our Rollback [promotional] campaign, but now there is a commitment to match Wal-Mart's prices."
ASDA said it was half-way to achieving its year-end target of cutting the prices of 4,000 products.
"ASDA is on the up because our prices are coming down," said chief executive Allan Leighton in a statement. "And with Wal-Mart behind us, Rollback will continue to deliver the goods."
Wal-Mart, the world's biggest retailer, has been widely expected to use its retail muscle to introduce lower prices in Britain after its recent £6.7 billion sterling takeover of ASDA.
According to figures compiled by market research firm Taylor Nelson Sofres, ASDA's Rollback campaign is delivering the highest sales growth of the major grocers.
ASDA's sales growth rose to a record 13.6 per cent for the four weeks ending August 22nd, according to the Taylor Nelson figures.
