Asda owners are planning a major overhaul of the retailer's prices with the launch of a new Just Essentials range.
Mohsin and Zuber Issa, the brothers behind the supermarket giant, have given its own-label suppliers just four weeks to support the launch. The new range will be part of a price repositioning by the brothers who bought the supermarket giant from Walmart in a £6.8billion deal last year, reports LancsLive .
The Grocer said around 300 products will be included in the new range, including beans, bread, crisps and biscuits. There will also be non-food products such as washing-up liquid and powder.
READ MORE: We tried 'value' teabags from Lidl, Aldi, Sainsbury's & Tesco
The move by Asda bosses has been described as “bold”, as the retailer aims to target price-sensitive customers amid the deepening cost-of-living crisis. The company has stressed that it wanted to emphasise the quality as well as competitiveness of its range.
However, the speed of the planned rollout of the range has reportedly stunned suppliers, with some questioning whether it is possible to launch such a proposition with only a few weeks’ notice.
In a presentation to suppliers seen by The Grocer , the supermarket also revealed plans for a wider reset which will see a major range simplification – even though it already slashed thousands of SKUs (stock keeping units) since the pandemic began – as well as the rollout of its new Asda Rewards loyalty card following trials in 16 stores.
The move comes after claims that Asda has lost its price competitiveness and been overshadowed by the discounters as well as Tesco and Sainsbury’s, with critics including celebrity chef Jack Monroe. Asda said it would be contacting suppliers about the launch of the new range and holding talks with own-label suppliers about how it will impact on their product line-up.
Experts predict the new range will replace Asda’s Smart Price range. In the presentation, Sam Dickson, Asda VP of own-brand, said: “Just Essentials by Asda is an extensive new range of over 300 products. It’s a bold, upbeat and positive brand. The plan was to launch this through May, June and July. But we want to do it faster because it’s really important for our customers that we are with them all the way.”
Get the top stories straight to your inbox by signing up for one of our free newsletters
