ASDA will win shoppers back by being an “online discounter” and selling the cheapest branded goods and petrol, its boss says.
Executive chairman Allan Leighton told The Sun yesterday it was critical for Asda to restore its reputation for good value.
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Signalling the gear-shift, it cut petrol and diesel prices by 4p yesterday after its previous bosses were accused of ripping off drivers.
Mr Leighton, who returned in November to lead his second turnaround of the supermarket, has already axed a price match guarantee with Aldi and Lidl.
He called it “completely nuts” to have given rivals free advertising, adding: “We’re focused on Rollback and Asda Price.”
Instead the supermarket will be a “discounter of brands” and online — whereas its German rivals rely on own-brands and do not sell online.
Mr Leighton warned Asda’s profits would be “materially reduced” next year to invest an undisclosed “war-chest” in improving the business.
This will be funded by £800million of cashflow, rather than any additional injection from private equity firm TDR CAPITAL.
He said: “This is an investment warning, not a profit warning, we are deciding to invest.”
Asda reported annual like-for-like sales had slumped by 3.6 per cent, despite food prices being higher.
Sarnie combo
BRITAIN’S biggest sandwich-maker has been trying to gobble up hummus dip giant Bakkavor.
Shares in the FTSE 250 firm shot up almost a fifth yesterday after Greencore revealed it had made two takeover approaches valuing Bakkavor at £1.3billion.
A deal would create a £4billion sandwich, dips and and ready meals company.
Gold shining
GOLD prices smashed another record yesterday — hitting a historic high of $3,000 an ounce (£2,322).
The precious metal has already risen 13 per cent since the start of the year, building on last year’s rally.
Gold is seen as a safe haven asset and does well amid uncertainty — such as that triggered by US president Donald Trump’s trade war.
GOOD WEEK: TIM Stacey, boss of furniture retailer DFS, which published an unexpected 2025 profit upgrade after a strong start to the year.
BAD WEEK: ARNE Freundt, Puma boss who saw shares tank by almost a quarter as the trainers firm was hit by the trade war.
