Today in Retail: Grocers square up as price war rages on

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Tesco has thrown the latest grenade in the enduring grocery price war, unleashing plans for an 11-day Black Friday bonanza, starting on Monday.

While some retailers are easing back from the promotional event, wary of it eating into profits, the grocer is upping the ante, promising the “biggest ever” event with discounts on 650 products.

Caught in the crosshairs, however, is a bruised Asda.

Today’s reported 5.8% drop in third-quarter like-for-like sales, although less dramatic than the almighty 7.5% tumble in the second quarter, is another blow for the Walmart-owned supermarket.

Although their sales are growing at a slower pace than previously, discounters Aldi and Lidl continue to chomp away at market share and undermine Asda’s customer value proposition.

So, Asda’s new boss Sean Clarke has a lot of work on his hands including simplifying the offer, investing in service and price and giving customers a great experience.

A store that does precisely that is Lego’s new flagship in Leicester Square, which opened its doors to customers today.

Elsewhere, Staples’ 106 UK stores are set to be shuttered and Majestic Wine has been spilling profits.

Quote of the day

“If you deliver the customer a great Christmas, they will reward you in the new year” – Tesco chief commercial officer Jason Tarry at a strategy presentation today