Asda has launched a new price strategy to undercut Tesco, Sainsbury’s and Morrisons’ loyalty deals, offering lower prices on over 2,300 everyday items without requiring a loyalty card. Part of its “That’s Asda Price” campaign, the move aims to simplify value for shoppers, ease post-Christmas budget pressure and reinforce Asda’s claim as the UK’s lowest-priced major supermarket. (Image: Asda)
Asda09 January 2026
Asda has stepped up competition in the UK grocery market by directly challenging loyalty-based pricing from rivals Tesco, Sainsbury’s and Morrisons. The retailer has launched a bold initiative designed to ensure shoppers pay less than competitors’ Clubcard, Nectar and More Card prices — without needing to sign up to any loyalty scheme.
Under its expanded “That’s Asda Price” campaign, the supermarket has priced more than 2,300 everyday items below equivalent loyalty offers at rival chains. The range covers staple categories such as fresh meat, fruit and vegetables, chilled foods, bakery and household groceries, with some prices reportedly up to 50% cheaper than competitors’ members-only deals.
The move taps into growing consumer frustration with complex loyalty mechanics and short-term promotions. Across the UK, supermarkets have increasingly relied on loyalty cards to unlock lower prices, a strategy that has drawn scrutiny from regulators and consumer groups who argue it can disadvantage less digitally engaged shoppers or those unwilling to share personal data.
Asda says its approach removes that friction by offering consistently low prices to all customers, regardless of membership status. The retailer argues this delivers greater transparency at a time when household budgets remain under pressure following elevated food inflation and a prolonged cost-of-living crisis.
To reinforce its value message, Asda is also running a January incentive through its Asda Rewards programme, offering shoppers 10% cashback into their Cashpot on all fresh produce purchased in-store during the month. Unlike rival schemes, Asda Rewards focuses on cashback rather than price unlocking, positioning it as a complementary benefit rather than a prerequisite for value.
Rachel Eyre, Chief Customer Officer at Asda, said the strategy is aimed at helping families regain financial control after the festive season. She noted that many households are feeling stretched post-Christmas and need straightforward, dependable pricing on essential items. According to Eyre, Asda’s pricing model is designed to deliver value that is “clear, consistent and available to everyone”.
The initiative builds on Asda’s wider price investment over the past year. Since relaunching Asda Price in early 2025, the retailer says it has lowered prices across more than half of its product range. Based on independent price benchmarks widely reported in the UK retail sector, Asda claims it has reclaimed its position as the country’s lowest-priced major supermarket.
With shoppers increasingly “voting with their wallets” and prioritising simplicity and affordability over points and perks, Asda’s latest move signals a strategic bet that everyday low prices — not loyalty lock-in — will be the next battleground in Britain’s grocery wars.
Source: Asda / GLO
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