Asda will abandon a scheme that refunds shoppers the difference if the goods they purchase are more expensive than in rival supermarkets, after other chains scrapped similar programmes.
The supermarket, which has agreed to a takeover by its bigger rival Sainsbury’s, said the scheme was no longer relevant and it would instead invest in lowering prices.
The move next month comes after Tesco scrapped its brand guarantee scheme. Sainsbury’s abandoned its brand match initiative in 2016.
The Asda price guarantee (APG) was launched in 2010, promising customers that their shopping would be 10% cheaper than at other big grocers. If not, Asda would refund them the difference plus 10% in a voucher to be used in stores.
“Today, the APG, while still the iron-clad promise it always was, has become less and less relevant to customers, with less than 1% of customers using it,” said the chief customer officer, Andy Murray.
“Customers have more price information at their fingertips than ever and they vote with their feet if they feel a retailer is off the mark on price,” he said.
Britain’s big four supermarket chains, including fourth-ranked Morrisons, have been trying to narrow the price gap with Aldi and Lidl but are still losing market share to them.
Asda said it had invested more than £100m in price cuts over the past year and planned further reductions next month.
Sainsbury’s agreed to a £7.3bn takeover of Asda in April. The companies said the deal would enable them to reduce prices by about 10% on many popular products.