ASDA’s price-lock strategy to win favour with half of cash strapped Brits as financial worries hit a new high in 2022, says GlobalData

Following the news that ASDA will invest £73 million to tackle the cost of living crisis by increasing pay and price-locking products until the end of the year, Amira Freyer-Elgendy, food & grocery analyst at GlobalData, a leading data and analytics company, offers her view: “Amid inflation, the rising cost of living and stagnant wages, UK shoppers have been on edge with many having been anxious about their personal finances for the last twelve months. However, in 2022 this has hit a record high that was previously only achieved in 2020 during the height of the COVID-19 pandemic. According to GlobalData’s latest research, 53%* of UK shoppers are extremely or quite concerned about their personal finances– meaning more than half of the population is struggling.

“As a result of most UK consumers being more price conscious, UK retailers are trying to keep up with German discounters like Aldi and Lidl when it comes to proving value for money – while also outcompeting each other. ASDA’s 12% price reduction of 100 family favourites mirrors other major British retailers’ moves, like Morrisons, Tesco and Sainsbury’s, in a fight for the attention of cash strapped shoppers.

“With ASDA keeping its price-lock until the end of 2022 it will help to set the company apart from other major retailers, as Sainsbury’s established price-lock only lasts eight weeks. Simple and direct strategies will be the most appreciated by shoppers and will help to build trust with both employees and customers.”