Asda has announced that it plans to invest around £73 million in tackling the cost of living crisis for its customers and colleagues.
In a bid to counteract the effect of inflation on UK households, the supermarket has “dropped and locked” the price of over 100 products and increased pay for 120,000 colleagues by upping the hourly rate to £10.10 an hour.
The decision follows Asda’s “Pulse of the Nation” survey findings that found that 9 in 10 consumers were concerned about inflationary costs and 87% were anxious about increasing grocery prices.
The supermarket’s “Income Tracker” also revealed that Britain’s lowest income families had 74% less disposable income in March compared to that of the same time last year.
As a result, the value focused range, “Just Essentials at Asda”, that Waitrose recently branded as mimicking its own “Essentials” range, will offer customers 300 low price essential products.
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“Products covered by the ‘dropped and locked’ promise include a range of household favourites, including fresh fruit and vegetables, fresh meat, store cupboard favourites like rice and noodles as well as soft drinks, desserts and frozen products,” Asda said.
“On average, prices will reduce by 12% and include staples such as John West tuna, dropping by 14% from £3.50 to £3, or 500g of Asda easy cook rice which has dropped by 25% down to 75p from £1.”
As for Asda’s colleagues, the hourly rate will be increased to £10.10 from July, giving staff an additional 60p on top of the National Living Wage. Colleagues will also be further supported by a 10% staff discount and have the opportunity to receive a £400 bonus at the end of the year.
Asda co-owner Mohsin Issa added: “We know that household budgets are being squeezed by an increasing cost of living and we are committed to doing everything we can to support our customers, colleagues and communities in these exceptionally tough times.”
“We’re standing side by side with the families and communities who are juggling so many demands at the moment. We’re taking unprecedented action to give families some additional stability and certainty in their weekly shopping by lowering and locking over 100 prices until the end of the year.”
“We’re also proud to be investing in increasing the pay for our hardworking store colleagues and continuing to support the communities we are part of.”
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