ASDA - comment

Nothing about increased price competition is good, although all parties are acting rationally for now. The price cuts launched by ASDA have prompted a response from Tesco and Sainsbury. Despite the cuts, we expect ASDA to cover its interest from free cash flow this year. ASDA’s cuts are a three-year plan to boost volumes by winning back volumes lost to Aldi, Lidl and Tesco/Sainsbury. The FT is sceptical about ASDA getting suppliers to fund promotions, but the power in the relationship still lies with the supermarkets.

https://www.ft.com/content/8501386c-3653-43ca-a71c-9704964ac373