Supermarket chain Asda has announced that it will spend a further £500 million on price cuts as part of “radical action to win back our customers".
In November 2013, Asda said that it would be spending £1 billion on price cuts over the next five years in order to combat the rise of discount supermarkets Aldi and Lidl.
“We must take radical action to win back our customers," chief executive Andy Clarke said.
"We expect that 2016 will be another year of intense pressure at a macroeconomic level in addition to sales remaining under strain from price deflation, a continued competitive background throughout the sector and radically changing customer shopping habits."
The rest of the ‘big four’ supermarkets are due to release their Christmas trading results this week.
