Asda and Tesco have both unveiled thousands more price reductions as they gun for share of the spend today's wage packets will unleash.
But Asda has revealed a new weapon in its armoury. The Wal-Mart-owned grocer has pledged to abandon opaque deals and provide “absolute transparency” on price.
Unsurprisingly, Asda is trumpeting its value-for-money credentials and talks about its determination “to drive down the cost of the weekly shop for millions of hard-pressed shoppers”.
But what is surprising is the number of times Asda alludes in its release to “justified” price rises. Explaining its decision to shun deals that are “vague” about price, such as bogofs, the retailer says it will not be “putting up any prices that can't be fully justified”.
Chief merchandising officer Darren Blackhurst says: “My message to suppliers is simple: we will always champion lower prices for our customers and will not stand for any price rises that can't be justified.”
So is Asda actually expecting some price rises and preparing shoppers for them? Not likely.
Asda is sending a message to suppliers to be under no illusion that keen value is the priority and price increases should be avoided as high priority. The retailer is keen to be seen as a fair dealer, hence the riders. So if, for instance, there is a crop failure or similar crisis, an uptick in prices would be accepted. Otherwise, fairness in negotiations will be balanced with firmness - for which, perhaps, read rock-hard.
As Blue Oar analyst Greg Lawless has been pointing out for a while, competition in food - which was always a needle match - is hotting up. Value is even more front of mind for recession-hit shoppers than it usually is - and it is always a preoccupation.
Sharp prices are shaping up to be a defining feature of the latest jostling among the supermarkets. There's always an element of hype in the claims and counter claims about cheapness and value, but at the same time this is looking less and less like a phoney war and more like a genuine offensive.
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