Britain's major supermarkets have launched a fierce price war, with Asda slashing costs on over 2,300 everyday products and Tesco bringing back its nostalgic blue-and-white striped branding from the 1990s to signal value. The moves come as families face post-Christmas financial strain and competition for shoppers intensifies.
Asda has relaunched its "Asda Price" promise, pledging to undercut loyalty card prices at Tesco, Sainsbury's and Morrisons on thousands of products. The supermarket claims reductions of up to 50% on everyday items across fresh meat, produce, chilled goods, bakery lines and core groceries. The initiative aims to help households "get budgets back on track" after Christmas spending, according to the retailer.
The strategy comes at a critical time for Asda, which experienced a bleak festive period. The chain was the only major UK supermarket to see sales drop during the Christmas run-up, with revenues tumbling 4.2% in the 12 weeks to December 28. Market share fell to a new low of 11.4%, marking the 22nd consecutive month of decline for the struggling retailer.
Tesco's Retro Response
Tesco has countered with its own campaign, reintroducing the recognizable blue-and-white stripe pattern it first launched in 1993 but dropped in 2012. The UK's biggest grocer is positioning the retro design "front and centre" in stores alongside a red "Everyday Low Prices" logo as part of a 2026 rollout. The campaign promises to keep costs "consistently low" on 3,000 branded products.
Tesco UK CEO Ashwin Prasad said: «Our most-loved brands don't just have a place in our shopping baskets - they hold a genuine place in the nation's heart.» He added: «That's why we're committed to keeping prices consistently low on thousands of branded products through our new Everyday Low Prices.»
Price Comparisons
Asda has highlighted specific savings versus competitors. Pampers Baby Dry Size 3 Essential Pack costs £6.00 at Asda versus £11.00 at rival stores. Philadelphia Original Soft Cream Cheese sells for £1.00 compared to £1.35 elsewhere. Warburtons Tiger Bread is priced at £1.40 against £1.65 at competitors.
Other examples include Goodfella's Stonebaked Thin Margherita Pizza at £1.75 versus £2.90, and Arla Skyr Natural Icelandic Style Yogurt at £1.25 compared to £2.25 at rival chains.
No Loyalty Card Required
Asda chief customer officer Rachel Eyre emphasized the retailer's approach: «We know many families are feeling the pinch post-Christmas and it can be difficult to get household budgets back on track. We want to help by giving them the lowest prices on the products they buy the most. Asda Price means great value with clear and consistent pricing which is available to everyone without the need for a loyalty card.»
Despite this positioning, Asda continues to operate its own loyalty program, Asda Rewards, which offers customers 10% back in their "Cashpot" on all fresh produce purchased in-store.
Consumer organization Which? identified Aldi as the cheapest supermarket for short shopping lists in December 2025, but named Asda the winner for longer grocery lists including branded items not typically stocked by discounters. The Grocer magazine has also recognized Asda as the UK's lowest-priced major supermarket.
Note: This article was created with Artificial Intelligence (AI).
