ASDA last supermarket to withdraw price guarantee scheme: how will shoppers save in future?

As the last of the big four supermarkets pulls the plug on its money-saving scheme we look at why these schemes no longer help shoppers.

Last week it was announced ASDA will abandon their price guarantee scheme, with changes coming into place from 3 October.

The scheme, which ran for eight years, promised shoppers that if their baskets were not cheaper than rival supermarkets, they would happily refund the difference.

The recent withdrawal of the scheme has seen ASDA become the last of the big four supermarkets to ditch the consumer money-saving option.

Morrison’s ended there’s back in November 2015, Sainsbury’s said goodbye in 2016, and Tesco halted theirs earlier in 2018.

Should you worried about the cost of your weekly shop rising?

In short, no. The change highlights a trend that shows supermarkets responding to altering consumer shopping habits.

Firstly, consumers are shopping more frequently, and when they do, they are buying less. A price guarantee scheme with a requirement of eight items or more in your shopping basket is no longer applicable to most people.

When Tesco ended their scheme in July, only one in eight shoppers were still using it.

Secondly, a decreasing preference for branded goods has been noted. An ASDA own brand shop will always be less expensive than a branded food shop, even with the price guarantee scheme in place.

Shoppers have clearly clocked on to this, and apart from a few exceptions, opt for own brand goods or even cheaper alternatives at Aldi and Lidl.

This makes prices comparison between supermarkets redundant.

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How did ASDA brand matching scheme work?

The ASDA price guarantee (APG) was launched in 2010, promising customers that their shopping would be 10% cheaper than at other big grocers. If not, Asda would refund them the difference plus 10% in a voucher to be used in stores.

The shops eligible for price comparison were Morrisons (in-store), Waitrose.com, Tesco.com and Sainsburys.co.uk

Shoppers also needed to have purchased at least eight different items, of which at least one must be branded product comparable to competitors. You could claim back online by entering in your receipt barcode.

The last day the scheme will run will be the 3 October, then shoppers will have 28 days to redeem any remaining coupons.

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For customers who prefer cheaper alternatives to branded goods, it is positive to see ASDA invest in new ways to lower prices and become more competitive.

They have invested more than £100m in price cuts over the past year and planned further reductions next month.

We expect ASDA to do something similar to Tesco, who has begun clearing branded products like Higgidy pies and Danepack bacon, while revamping its own-brand lines to make them appear more upmarket.  

Tesco has already ditched its "everyday value" basics range, replacing it with "The Hearty Food Company" to make items more appealing.

This should mean that lower-priced goods won't have to compromise on quality.

So, to summarise, the best way to save money on food shops in the future is to get the lowest price possible regardless of whatever gimmick is running.

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