Supermarket throws down the gauntlet

Asda has guaranteed to sell groceries at least 10 per cent cheaper than all of its major rivals as it battles to win shoppers struggling with VAT and soaring bills.

The UK's second-largest supermarket group has promised to refund customers in vouchers if they find their groceries less than 10 per cent cheaper elsewhere.

The move builds on the retailer's original price guarantee announced in April last year. That offered customers the difference in price against its competitors plus 1p.

Under that deal, shoppers get 10 if they found 100's worth of shopping for the same price anywhere else.

The latest price comparison will be run by the independent MySupermarket.co.uk website.

Asda said the guarantee would cover 15,000 products listed on the MySupermarket site, including about 7,000 items subject to VAT.

Asda chief executive Andy Clarke said: "Our customers place their trust in us to always have the lowest prices. But from today our price promise is backed by a copper-bottomed guarantee – if the basket of food you buy in our stores is not at least 10 per cent cheaper than each of our major rivals, we'll put our hand in our pocket and give you back the difference.

"The Asda price guarantee cuts through all the phoney claims and headline numbers, and shows when it comes to saving people money, we mean business this year."