London Daily

Focus on the big picture.
Friday, Jun 20, 2025

Asda says some shoppers setting £30 limit at tills

Asda says some shoppers setting £30 limit at tills

Some Asda shoppers are setting £30 limits at checkouts and petrol pumps, the supermarket's chairman has said.

Customers are putting less in their baskets, switching to budget ranges and are worried about the future, said Lord Stuart Rose.

"What we're seeing is a massive change in behaviour," he told the BBC.

It comes after food and fuel costs soared in the UK. Inflation - the rate at which prices rise - reached a 40-year high of 9% in April.

Lord Rose said he saw the inflation rise coming last year like a "train coming through a tunnel with a big flashing light on the top". Now it's time to "fasten our seatbelts", he said.

"People are trading back. They are worried about spending," he said. "They've got a limit that they've set out, too. They say £30 is one limit... and if they get to more than £30 then that's it, stop. It's the same with petrol."

Lord Rose said the country was facing some very tough times and urged the government to do more to help low income households.

But the Treasury said it understood people were struggling with rising prices and it was making cost of living payments of £1,200 to those on the lowest incomes.

Lord Rose also addressed government concerns that supermarkets were not passing on March's 5p per litre cut in fuel duty, insisting Asda price changes were "done the same day".

The retail veteran has some 50 years of industry experience under his belt. He remembers the runaway inflation of the 1970s and said this bout of rising prices has come as a very nasty surprise for consumers.

"I'm of the generation that remembers what it was like last time. And once [inflation] gets hold, it's quite pernicious," he said.

"And it takes a long time to eradicate... We're in danger of being in a place that it's very difficult to extricate ourselves from.

"What's rather sad is that the country, the government, perhaps the Bank of England didn't see inflation coming quickly. They've now recognised that."

Asda has been tracking disposable income since the financial crisis in 2008 and is all too aware of the squeeze on consumers.

Its latest data shows households had, on average, £44 less a week in discretionary income in May compared with a year ago - a fall of nearly 18%. This is the amount of money left over after taxes and essential bills have been deducted and it is the third month in a row where disposable incomes have dropped to record levels.


Budget range


Asda has launched a new budget range called Just Essentials


Like other supermarkets, Asda is having to grapple with its own soaring costs and decide how much of this to absorb and how much to pass on to shoppers.

All the big grocers are in a battle to keep prices as low as possible on the most popular everyday items because they know customers will vote with their feet and shop around.

The UK's third biggest grocer has expanded its cut price groceries with a new range, Just Essentials, covering some 300 products.

It has also launched Dropped and Locked, an initiative to lower prices on 100 items and keep them at the same price for the rest of the year.

"We're doing everything we can. We've invested nearly £100m in the last month or so making sure customers get essentials at very, very attractive prices to try and help them," said Lord Rose.

But will it be enough? Asda has recently been performing less well than its rivals.

Lord Rose said he was not too worried about market share in the short and medium term.

"It goes up a bit, and down a bit, you'll see the monthly changes and that's always been the case in retail... We will do what we need to do to look after our customers," he said.

"Secondly, because we've had a change of ownership - my colleagues and I only took over the business a year ago - we're doing things which we think will affect the long term of the business which will give customers a better Asda."


'More support'


The Asda chairman and former M&S boss said he did not want to predict where food prices will get to by the end of the year but would like to see more government support for those most in need.

"I would urge them to do more for those people at the bottom end of the earnings income scale," he said. He suggested a VAT reduction or another reduction in fuel tax would be "helpful".

He acknowledged the government now has a difficult balancing act between tackling rising prices without scuppering economic growth. But he knows what he would do.

"I would say the most important priority in the short term is to kill inflation, because once inflation gets embedded, it's very, very hard to kill. If it means we have to slow the economy down for a while, and it looks as if we are heading for a recession, then so be it."

A government spokesperson said its £37bn support package meant it would deliver a tax cut in July to save the typical employee more than £330 a year.

It said people on Universal Credit would keep £1,000 more of what they earn and a 5p cut on fuel duty would save a typical family £100.


Asda chairman: Inflation is sparking a "massive change in behaviour" amongst shoppers


Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×