Uk

Issa brothers announce Asda price cuts after being grilled by MPs



The 226 products, which have been reduced in price by an average of nine percent, include a host of fresh fruit and vegetables, frozen meat and fish products, cupboard staples and ready meals.

The supermarket, owned by Blackburn’s Issa brothers, has said the cuts are to support families struggling with the cost of living crisis.

It comes less than 24 hours after co-owner Mohsin Issa was grilled over the supermarket chain’s fuel prices and employment practices.

Mr Issa and the company’s chief people officer Hayley Tatum were involved in an often heated evidence hearing with the Business and Trade Committee on Wednesday (July 19).

The committee heard how Asda’s pence per litre fuel margin targets were three times their 2019 level by 2023, and the retailer deliberately passed on reductions to retail prices more slowly in areas where they had no competition.

Asda was fined £60,000 by the CMA for failing to provide relevant information in a timely manner.

Later addressing Asda co-owner Mohsin Issa, committee chair Darren Jones said: “I don’t know if you heard the testimony from the CMA before, but they were essentially not very happy with the way you and your colleagues engaged with their inquiry into petrol prices, and said if they could have charged you more than £60,000 because of your behaviour they would have done.

“Do you have any reflections on that?”

Mr Issa, who with brother Zuber founded the EG Group, replied: “That’s unfair, personally, because we sort of complied with all regulatory requests.”

This new price cut initiative, announced today (July 20), comes as the latest Asda Income Tracker shows 40 per cent of UK households had negative disposable income last month – meaning their take home pay is not enough to cover their bills and essentials.

Last month, Asda launched a summer price lock campaign to freeze the prices on 500 branded and own-label products until the end of August.

The supermarket also extended its ‘Kids Eat for £1’ café meal offer for the rest of this year.

Since launching this initiative last July, Asda has served two million meals from its cafes and invested £1.3 million subsidising the offer to keep the meal prices at £1, and it recently added a selection of half priced adult meals to the menu.

Kris Comerford, Asda’s chief commercial officer, said: “We know families are continuing to feel the pinch financially – especially as they head into the summer holidays – and are looking for help to make their grocery budget stretch further.

“Whenever there is an opportunity to help them make their money go further by lowering prices we will continue to do so.”

The price reductions are effective from July 21 in stores and online.

The Issa brothers, Mohsin and Zuber, completed their £6.8 billion acquisition of Asda from Walmart in February 2021.




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