Asda’s coming gunning – prices get ready to die

Powered by one of the world's most advanced price comparison engines (for professionals – not housewives), Asda has decided to take over the electronics market. Driven by almighty Walmart, can they deliver? KitGuru heads to the shop floor with a PDA.

Late at night, as they drift off to sleep, merchandisers dream of a world where they know everything that their competitors are doing – and then have the ability to undercut every promotion the opposition is running, by 1 penny.

Rolling into the fourth quarter of 2011, that's exactly what Asda is aiming to have locked-and-loaded.

Tesco was so happy to play the price comparison game when it was up against Sainsbury's and Morisson's. Less keen now that price aggressor Asda has seen profits fall by almost £100 million. The idea that an Asda customer can check their bill from home is an even deeper game, playing on buyer's remorse.

In a bid to restore revenue and profit growth, Asda has partnered with a company called Skuuudle, which  automatically compares its product range and pricing with the competition – allowing Asda to react instantly if it thinks Tesco is offering a better deal.

If you're thinking about stuffing a new netbook, notebook or tablet into your significant other's Xmas stockings – then Asda claims it will deliver “ground breaking prices”, with free in-store collection for items you have chosen online. This is something that will put it ahead of eBuyer, Dabs etc – all of whom require a delivery. Asda electronics can be collected with your weekly shop and cheap petrol.

KitGuru says: There has to be a limit to how low prices can be cut. While we all like a good deal, we also like our friends and family to be employed. Play price cutting to its logical conclusion and the prices that are driven down will result in an increased dole queue.

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