Tesco, Asda Cut More Prices

Tesco PLC and Asda Group Ltd., the U.K.'s two biggest supermarket chains announced another round of major price cuts amid intense competition.

Tesco will cut prices on 3,000 products
by up to 50%, a company spokesman told reporters after the group's
annual shareholder meeting. This follows price cuts on 5,000 items
last week, he said.

Asda has slashed the price of its 10
top-selling grocery items, including bread, butter and eggs to just
50 pence each for the next three days.

Over the last six months, competition
has been intense as consumers face higher living costs, particularly
with fuel and energy, the Tesco spokesman said.

No-frills supermarket chains such as
Germany's Aldi, locally-based Iceland and Lidl's are reportedly
already reaping the benefits as shoppers seek out cheaper products.
Further price cuts across the sector are expected given the rising
cost of fuel and commodity prices.