Asda calls time on price guarantee pledge

Asda calls time on price guarantee pledge

Asda has become the last of Britain’s big four supermarket chains to call time on its price guarantee pledge as it chooses to allocate resources toward funding price cuts instead.

The Walmart-owned retailer will cease offering customers refunds for goods which could have been purchased more cheaply elsewhere from next month, arguing that the initiative was no longer relevant.

The Asda price guarantee scheme (APG) promised customers that their shopping would be 10% cheaper than at rival supermarkets, else Asda would refund the difference and hand out an additional 10% in the form of a voucher.

Chief customer officer Andy Murray said: “Today, the APG, while still the iron-clad promise it always was, has become less and less relevant to customers, with less than 1% of customers using it.

“Customers have more price information at their fingertips than ever and they vote with their feet if they feel a retailer is off the mark on price.”

The change in tack follows Sainsbury’s announcement of a £7.3bn takeover of Asda, as the two supermarket giants conspire to topple Tesco from its position of dominance in the UK grocery sector.

Sainsbury’s axed its own price guarantee pledge back in 2016 but Asda, despite wavering with a 'review' of its own, held on.

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