Asda issues £69 warning to shoppers visiting supermarket in December

Asda has issued a £69 warning to shoppers who are visiting its stores and supermarkets ahead of Christmas. The Asda Income Tracker shows household disposable income fell for only the second time this year, decreasing by £1.98 in October.

It has left the average UK household with £247 per week. Their net income does not cover the cost of bills and essential spending – leaving them with an average weekly shortfall of £69 - and those aged 30 to 49 experienced the fastest annual rise in the cost of essential spending, which increased by 3.8% to £765 in October.

These households, often made up of younger families with children, face significant essential expenses, including childcare costs. The rise in essential spending also saw these households record the weakest growth of any age group with their disposable income only increasing at 5.5% to £298 per week in October – their weakest growth since January.

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Cebr expects the inflation rate is expected to remain above target for the rest of the year. Sam Miley, Managing Economist and Forecasting Lead at Cebr, said: “October’s reading was only the second time this year that the Income Tracker reading has fallen on the month.”

“This was largely expected, given the increase in the Ofgem price cap that took place at the start of the month, bringing higher energy bills. These increased energy prices will persist over the rest of Q4, leading to slightly dampened spending power over the festive period.”

Asda - which is rivalled by Tesco, Sainsbury's, Morrisons, Lidl and Aldi - says it continues to support the communities it serves by launching new propositions and by maintaining its position as the UK’s lowest-priced traditional supermarket.

This week it was recognised as being the cheapest supermarket in The Grocer 33 basket comparison, despite this survey now including competitor loyalty pricing.