Asda's profits have fallen by 10% in 2017

With Asda being taken over by larger rival Sainsbury’s they have revealed a 10% slump in annual profits for 2017.

They have blamed price cuts for the decline in pre-tax profits as it’s regrouped to fight back against the discounters Aldi and Lidl.

Pre-tax profits fell from £791.7m in 2016 – which was its worst performance since it was taken over by the American grocer Walmart in 1999 – to £712.6m last year. Sales increased by 2.6% to £22.2bn.

Asda’s chief executive, Roger Burnley, said: “Our 2017 accounts reflect a solid performance and a strong, well-managed business. During the year, momentum returned, driven by a series of planned investments in lowering prices, further improving quality and innovation in our own-brand ranges and providing an even better shopping experience whether in store or online.”