‘Rollback’s returned, Whitfield’s on board – and the fightback’s on at Asda’

In a year or two’s time, the last week may go down as bringing one of the most significant shifts at Asda in recent years, certainly since its takeover by the Issa brothers, which signalled a loss of direction.

That’s because it was the week that Asda – now led again by chair Allan Leighton, one of the people who originally took it through glory years – signalled a return to fundamentals, notably on value for money, as the Rollback programme was reintroduced as a precursor to the return of Asda Price – as synonymous with low prices as the famous pocket-tap.

On a visit to Asda’s Portrack Lane branch in Stockton it would be hard to miss the launch of the price offensive.

From the roadside approach to the store (opposite an Aldi) a banner proclaimed Rollback’s arrival, and inside the shop the message was rammed home over and on almost every aisle.

A lot relies upon the new focus on price, and the extent to which it reassures existing shoppers that they’re getting the best value

Rollback was first deployed at Asda two decades ago, following its acquisition by Walmart, and was last used two years ago.

That’s long enough ago for Rollback’s reappearance to be noticed, while the heritage of the price position is established enough to ring bells in shoppers’ minds. The prominence of the in-store signage sends the much-needed message that Asda is serious on prices.

The need for action was evident once again in the latest Kantar data, released this week. Asda was the only big supermarket group to record a sales decline in the 12 weeks to January 26 – down 5.2%, and its market share was one percentage point lower year on year at 12.6%.

Additionally, credit agency Moody’s warned that Asda needs to step up to the plate to avoid further downgrades to its rating.

So, a lot relies upon the new focus on price, and the extent to which it reassures existing shoppers that they’re getting the best value and draws in new customers who might otherwise go elsewhere.

As well as going back to basics at its main supermarket business, Asda’s continues to pursue in tandem newer operations

Over the years, Asda has flip-flopped on its approach to price. Typically positioning itself as an everyday-low-price player, it has sometimes gone the other way and opted more for promotions to avoid ‘boring’ customers hungry for bargains – halcyon days, when consumers had enough cash in their pockets to take EDLP for granted.

These days, of course, grocers need to offer both in sufficient quantity. That was evident in the Kantar data too, which showed that promotions accounted for 27.2% of sales – the highest proportion in four years – alongside the fact that “people also turned to non-branded products to help keep costs down”.

The point is though that Asda has now firmly planted its flag in the ground on price. The Rollback campaign will be followed up by more reductions in the coming months as a wider price realignment takes place on an ongoing basis over the next couple of years.

Hot on the heels of the rollback news came the return of Jo Whitfield to Asda – this time as a non-exec director. Whitfield formerly spent eight years at the grocer in various roles at the core food division and the George clothing business and brings high-level experience from other retailers.

Asda said that “given her breadth of experience in the convenience market from her time leading the Co-op’s food business, Jo will have a particular focus on supporting the growth of Asda Express”. There’s a nice symmetry about that. As well as going back to basics at its main supermarket business, Asda’s continues to pursue in tandem newer operations such as the growing c-store arm.

Leighton said of Whitfield’s appointment: “She understands Asda’s DNA and the role this business plays in delivering value for hard-working families.”

That word, DNA, is peppering every Asda announcement at present. Upon his appointment, for instance, Leighton said his mission was to “restore Asda’s DNA”. Expect more of the same. After all, it takes constant repetition of a message for it eventually to sink in, whether among customers or Asda’s staff – and it’s a good, reassuring message that’s easy to understand.

There’s plenty to do, such as on availability. But the return of Rollback and the return of are signs that the fightback is on at Asda. For the first time in a while, it’s on the offensive.