Tuesday 22 March 2022

Asda Set To Introduce New Budget Range And Continue Simplification Drive

Asda is launching a major price repositioning that will involve the rollout of a new budget range and further SKU simplification.

According to trade magazine The Grocer, the new own-label offering will be called ‘Just Essentials by Asda’. It will cover around 300 products including items such as beans, bread, crisps, and biscuits as well as non-food lines such as washing-up liquid and laundry powder.

Asda said the move was aimed at appealing to price-sensitive customers facing a cost-of-living crisis as inflation soars, although it stressed that it would also emphasise the quality of the new range.

Analysts have suggested that Asda has lost some of its price competitiveness under the ownership of the Issa brothers and TDR Capital. The business recently faced criticism from anti-poverty campaigner Jack Monroe for raising the price of essentials and the lack of coverage of its existing Smart Price and Farm Stores value ranges.

However, The Grocer noted that the speed of the planned roll-out has caused concern among own-label suppliers, some of whom have questioned whether it is possible to launch such a major proposition in a short space of time.

The new range is expected to replace Asda’s Smart Price offering, with the supermarket saying ‘Just Essentials’ will be a “bold, upbeat and positive brand”.

Asda had planned to start rolling it out from May but said: “We want to do it faster because it’s really important for our customers that we are with them all the way.”

The Grocer report also said that a recent presentation to suppliers by the supermarket revealed plans for a wider range reset which will see further SKU cuts on top of those carried out during the pandemic. The retailer said the simplification process would ensure there were no more than three iterations of the same product.

Asda also wants to simplify its promotions strategy, with no product promoted more than three times in any 12-month period.

The report added that the Issa brothers were also planning an overhaul of Asda’s stores and the rollout of its Rewards loyalty scheme that has been undergoing trials in 16 supermarkets.

NamNews Implications:
  • Aimed at those facing an inevitable cost-of-living crisis as inflation soars, without compromising quality.
  •  i.e. If this “bold, upbeat and positive brand” hits these notes…
  • …it has to find a market.
  • Rolling it out faster than the planned May launch could cause logistical problems…
  • …therein an opportunity for rivals?
#AsdaPace #CostOfLiving

No comments: