22 February 2016 - Janet Bird
Asda is appealing for help from its suppliers with a planned fightback against discount supermarket rivals Aldi and Lidl.
The beleaguered supermarket chain, which recorded the worst sales fall in its history in the last three months of 2015, has entered into talks with suppliers to identify further ways of cutting costs.
Like for like sales dropped 5.8 percent between October and December 2015, the sixth consecutive quarter of falling sales for Asda. Worse still, the decline in sales appears to be accelerating.
Asda, however, refutes any suggestion it is a business in crisis, pointing out it recorded a 1.9 percent increase in annual operating profits last year to top £1 billion for the first time.
A £500 million investment in cutting prices on 1,600 more products is planned, part funded by a £250 million programme of efficiency savings.