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Asda Announces Record Price Cuts

LONDON - Wal-Mart's UK subsidiary Asda said on Thursday it is chopping prices by a further 65 million pounds ($120 million) as competition increases, Reuters reports. The latest cuts, spread across all product areas, would make a record total of 175 million pounds of price reductions so far this year.

No. 2 Asda also said it expects to sell around 18 million eggs during the traditional Easter egg splurge.

Price competition among the leading U.K. supermarket chains is escalating as they seek to defend their positions in the wake of William Morrison's takeover of rival Safeway. Morrison is using cost savings from the merger to cut prices at Safeway to revive dwindling sales.

On Tuesday, Morrison, the country's fourth biggest grocer, said Safeway customers were now paying 24 percent less for a typical shopping basket.

Market leader Tesco kicked off 2004 with 70 million pounds of price cuts, and third-placed Sainsbury is planning to chop its prices in the summer.
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