Shares of Tesco (LSE:TSCO) and J Sainsbury (LSE:SBRY) moved lower on Tuesday after Asda announced another round of price reductions across its stores, intensifying competition in the UK supermarket sector.
Following the announcement, Tesco shares fell roughly 0.6%, while Sainsbury’s declined around 1%, as investors weighed the potential impact on margins and pricing strategies across the industry.
Asda said it had cut prices by an average of 6% across a wide range of categories, including staple groceries, household essentials, and non-food products, with some individual items seeing reductions exceeding 30%.
The retailer added that the initiative covers multiple store departments, emphasizing key everyday goods most frequently purchased by customers, as part of its strategy to strengthen its value positioning amid persistent cost-of-living pressures in the UK.
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