Branding: Asda adds home electricals range

by Miranda Fitzgerald, Marketing 18-Nov-08

UK supermarkets are pushing the price war into fresh territory by broadening their own-brand non-food ranges.

Asda is launching a low-price range of own-label electrical products,
including kettles, toasters and televisions, in the next week.

The roll-out follows Tesco's announcement last week that it will add

non-food products to its Discount line. It also plans to extend its

low-cost clothing range.

Asda's electrical range, designed by branding and packaging consultancy
flb, is intended to take on leading brands.

Electrical retailers have been hit by a shift toward online shopping and
reduced spending in the downturn. DSGi, which owns the Currys, PC World
and Dixons.co.uk electrical retail brands, announced a 5% sales drop in
the six months to the end of October. Like-for-like sales fell by
7%.

John Browett, chief executive of DSGi, said that sales of discretionary
items, in particular, have suffered from deteriorating customer
confidence.

Asda will cut 5000 products prices this autumn. Earlier this month, it
reduced its petrol price for the ninth time since July. Last week, it
announced a 6.9% rise in like-for-like sales, excluding petrol. In
September Tesco launched 350 lines under its Discount brand.