Wal-Mart Asda cuts prices & pledges on VAT
Asda has announced the first wave of its aggressive Christmas price cutting campaign, “bringing further relief to millions of beleaguered shoppers who are struggling to makes ends meet in the run up to Christmas.” The announcement is part of the supermarket’s commitment to make Christmas even more affordable for its customers. Thousands of new rollbacks will hit stores, adding to more than 4,000 price cuts previously announced in November. Asda’s President and CEO, Andy Bond, said: “Our core purpose is to make goods and services more affordable. In the run up to Christmas and month end, when household budgets are under greater pressure than ever, we know how important it is to save our customers money. That’s why we have launched our most aggressive Christmas price campaign ever.” All TVs and DVD players will be VAT free this weekend with Asda reducing prices by the full 17.5% on Friday, Saturday and Sunday. The retailer also confirmed it will be passing on the full VAT saving from Monday on its individual prices instore ensuring customers benefit from the Chancellor’s announcement to reduce VAT from 17.5% to 15%. Andy Bond added: “Our customers trust us to pass the savings on in full and so we have decided that the best way to implement these lower prices, and not incur unnecessary costs, is to apply the new rate of 15% VAT at the checkout.” Posters, point of sale and leaflets around the store will tell customers how the reduced rate of VAT is being applied. In order to keep costs down, and disruption to a minimum, Asda has decided to phase in changes to shelf edge prices once the Christmas and New Year sales rush is over – this will be completed by January.
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