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Shares in food retailers Tesco PLC and J Sainsbury PLC came under pressure on Tuesday after rival Asda announced a slew of price cuts renewing fears of a price war in the sector. In a press release on Tuesday, Asda said it was cutting prices by an average of 6% across a host of categories including core grocery, household, non-edible and free from with some prices dropping by over 30%. In total, Asda said it is cutting the cost of 956 everyday grocery products both in-store and online, as part of its commitment to Asda Price, including staples like pasta, cooking sauces, tea and coffee. Shares in Tesco were down 1.1% at 444.50 pence each in London and J Sainsbury fell 1.2% to 330.60p. Tesco had earlier traded as low as 430.10p and Sainsbury fell as far as 321.20p. Asda said the price cuts are intended to help ease financial pressures as customers head into the most expensive time of year. Rachel Eyre, chief customer officer at Asda, said: ‘We understand the pressure families are under from rising living costs and we‘re stepping up our support as we enter an expensive time of year for our customers. We’re cutting prices on the everyday products they rely on the most, helping them bring down their food bills.’ Earlier in 2025, Asda Executive Chair Allan Leighton laid out plans for the Leeds-based firm to reclaim market share by aggressively focusing on lower prices in order to win back shoppers, stoking fears of a price war. Leighton rejoined Asda in 2024, after previously being appointed CEO at the firm in 1996. He was credited with a successful turn around of the business in the mid-late nineties and oversaw the acquisition of the business by Wal-Mart in 1999. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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