Asda Kicks of another Price War
Having just reported one of the worst quarterly trading periods ever, Asda has just announced they are axing the prices on a very large number of their products in a head on assault with their rivals.
With like for like sales figures having taken a 5.8% tumble, and as the last quarter results did take into account the often make or break Christmas period, Asda are no longer the force they were it would appear with a huge number of their customers avoiding their stores and are instead opting to shop at low cost rival supermarkets.
No other UK based supermarket has seen a like for like quarterly drop as large as the one Asda has just experienced, and it would appear that they are now pinning their hopes of their latest round of price cuts to try and lure their customers back.
In total Asda have wielded the axe to some 1600 products through all of their UK based supermarkets, with a mix of regularly purchased items and some items which are not as popular, however whether this price cutting exercise is going to see any of their customer returning does remain to be seen.
If you are a UK Binary Options trader then you should always be very wary in regards to placing your trades on companies such as supermarkets that are experiencing a downturn in business, more so if those supermarkets are slashing prices left, right and centre.
The reason for us saying that is there is never any knowing in advance whether those price cuts will bring about a turnaround in fortunes for those companies and the share values could rise or fall accordingly.
With that in mind it may be more beneficial for you to spread your risk if you are thinking of placing Binary Options trades on supermarket stocks and shares for there are many companies you can place your trades on in that market sector.
However, it will be very interesting in the next few days and weeks to see if any of the other major companies out there in that market sector do try and go head to head with Asda and match their now even lower prices.
You are however unlikely to see low cost supermarket chains lowering their prices any lower than they are at present, but in the unpredictable world of supermarkets anything is of course possible!
