Asda aims to use Wal-Mart buying power to price out UK rivals
Asda will increasingly use the buying power of its parent Wal-Mart to step up its price competition and regain ground on its UK supermarket sector, the US company said on Wednesday.
After nine consecutive quarters of declining sales, Asda has been overtaken by Sainsbury's as the second largest UK grocer, with its market share at the end of January having fallen to 15.6% from 16.2% a year before, while Aldi and Lidl gallop up behind it.
November's quarterly results showed an easing of the decline, following the appointment of Wal-Mart veteran Sean Clarke as Asda's president and chief executive in July.
Wal-Mart said Clarke was working more closely with the parent company in order to market more Wal-Mart brands as its own at "price that no one else can match", the company told Reuters on Wednesday.