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Asda Strikes First in 2014 with 50p Rollback Promotions

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In an attempt to take on the increasingly strong discounters, Asda has increased the number of everyday items priced at 50p. In this Insight Brand View has looked further into Asda’s range of 50p Rollback promotions.

On Christmas Eve 2013 Asda had 376 products listed at 50p, but by 3 January 2014 this number had increased to 637 – a rise of 69 per cent.

At the same time both Tesco and Sainsbury’s had fewer products listed at 50p than on 24 December – a decrease of 7 per cent and 58 per cent respectively.

50p Rollback Insight | Brand View

The categories with the largest number of products featuring price cuts to 50p were Biscuits, Soup and Bakery. The biggest discounts were on Dairylea and Frijj: moving from £1.48 and £1.30 respectively. When looking at the 273 products which were reduced to 50p, the average saving is 40p.

50p Rollback Insight | Brand View

Looking at comparable products in Tesco and Sainsbury’s across the last three months we see that the average price of these products was very similar throughout November and December in all three retailers.

The average price of these products rose sharply in Asda in October, however, moving from an average price of 63p to 92p in four weeks – a rise of 46 per cent. The average price then remained constant for five weeks, until the start of the 50p Rollback Promotions.

When comparing the Asda average price on 17 October 2013 to the average price on 3 January 2014, we see a 21 per cent decrease – less than the 46 per cent decrease as the promotions started.

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