Food prices finally start dropping as supermarket price war brews - up to 45% off
Asda has slashed the price of another 1,500 "family favourite" products by up to 45% as it grapples to regain the title of the cheapest supermarket.
Nearly 10,000 products in store have been discounted since the return of its Rollback scheme in January, where prices are slashed for 12 weeks then moved to a new permanent price.
Allan Leighton, executive chairman of Asda, said its owners were prepared to "throw a lot of money" at the campaign to be crowned cheapest full-range supermarket.
In 2024, Asda was cheapest for nine out of 12 months, but, when loyalty card prices were included, Tesco took the top spot for half of the months.
Asda’s form is looking better in 2025. It is currently the cheapest for a big shop and has retained the title for January, February and March.
When comparing a smaller basket of items, all of which are available in Aldi and Lidl, Aldi is the cheapest supermarket, while Asda ranks fourth, behind Aldi, Lidl and Tesco.
Asda was planning to slash prices on about 90% of its range over the next 18 months, Mr Leighton told The Grocer.
This would be the biggest price reduction in 25 years.
Tesco said it expects to make up to £400 million less in profit next year as it faces "a very competitive market".
A price war is mounting according to its chief executive Ken Murphy who announced up to £500 million in cost cutting was coming for Tesco.
Asda price reductions for April 2025
| Product | Before | After | Saving | Reduction |
|---|---|---|---|---|
| Philadelphia Soft Cheese (165g) | £2.08 | £1.16 | £0.92 | 44% |
| Head and Shoulders 2 in 1 Classic (330ml) | £5.00 | £3.32 | £1.68 | 34% |
| Nestle Munch Bunch – Kids Pots (340g) | £1.78 | £1.18 | £0.60 | 34% |
| Clover – Butter Spread (500g) | £2.27 | £1.52 | £0.75 | 33% |
| Persil Capsules Nonbio Capsules (48PK) | £10.93 | £8.48 | £2.45 | 22% |
| Cathedral City – Standard Cheddar (360g) | £3.48 | £2.78 | £0.70 | 20% |
| Asda Little Angels Nappies Comfort & Protect, Size 6 (15kg + 34 pants) | £4.25 | £3.58 | £0.67 | 16% |
| Dairylea Dunkers (260g) | £3.12 | £2.33 | £0.79 | 25% |
| Pampers Wipes Sens (12x52) | £11.63 | £8.78 | £2.85 | 24% |
As well as competing with cheap prices, the cuts were also needed to respond to increased national insurance contributions which came into effect on April 1 2025.
The guidance "gives us flexibility and firepower" to respond to mounting competition among supermarkets, Mr Murphy said.
NimbleFins regularly gathers information on the cheapest supermarkets.
Latest data, for March 2025, showed Aldi was the cheapest supermarket for a 79-item basket of branded and own-label groceries, costing £133.73. Tesco (with a Clubcard) was the third cheapest supermarket after Lidl, with the same basket costing £146.79.
Asda was the fourth cheapest supermarket at £147.09. (Tesco without a Clubcard was more than £2 more expensive than Asda).
When it came to a big shop, which Aldi and Lidl are excluded from as they don't have all the products, Asda was cheapest.
The 203 items (which include the original 79), cost £498 at Asda and £503.03 at Tesco with a Clubcard. Without a Clubcard, the same trolley cost £540.63 at Tesco, according to Which?.
NimbleFins research shows the average cost of food for a UK household of two adults and two children is £117 a week.
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