Family spending declines for sixth month in a row

• 4.2pc year on year decrease in discretionary income of average UK household
• £7 a week decline in family spending compared with the same month the previous year
• June was the sixth consecutive month of decline in the Asda income tracker
• 1 in 8 are worried about losing their jobs in the next 6 months
• Almost 40pc are prepared to take a pay cut or reduced hours to keep their job
• 43pc expect their finances to get worse in the next 6-12 months

According to the latest Asda Income Tracker, the average UK family was £7 a week worse off in June 2010 compared to a year earlier. This represents the biggest fall in disposable income available to families since the beginning of the year. As a result, the average UK household had £171 a week of discretionary income in May 2010, down from £178 this time last year.

This picture is supported by a nationwide poll conducted by Asda, where almost 40pc of people are prepared to take a pay cut to avoid unemployment and 1 in 8 concerned about losing their jobs. Only 34pc of people currently feel secure in their existing role. Indeed, despite this month’s positive data unemployment is expected to edge up over the medium term in the face of public sector job shedding.

As well as insecurities around jobs the cost of living has continued to rise at an elevated pace, with inflation levels, at 3.2 per cent in June, above the limit of the Bank of England’s target for the sixth month in succession. While regular pay had increased by 1.8 per cent in the three months to May year on year – significantly below pre-recession levels.

The main factors putting downward pressure on family spending power in June included the transport category which saw the largest year on year increase, up 8.9 per cent in June. Utility bills also edged up relative to last year for the third month in succession, rising 0.5 per cent in June, after a 0.6 per cent increase in May. Mortgage interest repayments in June were up 4.6 per cent annually, as in May.

The only broad area of spending on the consumer price index which has given a boost to households discretionary income when compared to a year ago was the cost of clothing and footwear which was 1.4 per cent lower in June than a year ago. This is far below long run average levels, as clothing and footwear has decreased on average by 4.6 per cent annually over the June 1993 to June 2010 period.

Charles Davis, the economist at Cebr who compiles the report for Asda, said:

The Asda Income Tracker reveals that discretionary income has fallen by 4.2 per cent in June year-on-year. Despite reductions in official unemployment figures and an easing of inflation, annual growth in earnings remains weak while the cost of many essentials continue to rise.

“The bottom line is that real family spending power has continued to fall and the outlook continues to look tough for households.”

Andy Clarke, Asda CEO, said:

“Our customers are telling us that not only do they have less money, but many are worried about their job security, and can’t see their finances improving for some time.”

“That’s why it’s really important we do everything we can to help lessen the blow.”

“We’re ready for the challenge – and will do everything in our power to ensure families don’t pay a penny more than they need to for the things they need most.”

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Posted by Asda Press Team on 21 July 2010, 00:01

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UK teens put pressure on parents purse strings with outlandish demands for High School Proms

• 60% of parents feel pressured into buying designer expensive dresses for their children
• 74% of parents are willing to go without to ensure that their children celebrate their prom in style
• Half of parents admit that their daughter’s first prom is just as important as their wedding

Limousines, helicopters, designer dresses, tuxedos and expensive jewellery are some of the outlandish demands parents are facing around this year’s school proms. A recent survey by George at Asda revealed that 60% of parents were feeling the pressure to buy expensive outfits for their children just so they can keep up with their peers.

more Posted by Asda press team on 16 July 2010, 10:56

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Research from Asda, shows that the nation is divided in their toilet roll habits as they ask shoppers, do you scrunch or fold? According to the survey 68 per cent fold their toilet paper before wiping and only 15 per cent of us scrunch it.

Traditionally, it’s claimed that women are more likely to scrunch and men are more likely to fold. The survey from Asda and You Gov shows that this is the case but perhaps things aren’t as clean cut. Only a fifth of women admitted to scrunching their toilet paper compared to 10 per cent of men whereas three quarters of men admitted to folding against 63 per cent for women.

According to the research, the older a person gets the more likely they are to fold their loo roll which could come down to them having a little more time to spend a penny. Only 57 per cent of 18-24 year olds admit to folding before wiping whereas three quarters of over 55 year olds claim to do the same thing.

It’s nice to have something to read on the loo, more so if you are male, as men are more likely to read on the toilet compared to women with 59 per cent saying that they read whilst on the toilet compared to just 43 per cent of women. Some men opt for the traditional toilet reading of newspapers (45 per cent), books (33 per cent) and magazines (46 per cent) whereas some of us are more high-tech reading mobile text messages (21 per cent), internet pages on phone or laptop (17 per cent) with others simply looking for a laugh as 4 per cent read joke books.

more Posted by Asda press team on 13 July 2010, 11:26

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Asda urges shoppers to get blood pressure checked after big wins

As the excitement of the World Cup gets too much for shoppers, Asda is urging its male customers to get their blood pressure tested after big matches. After months of tension and build up, football fans across the country were greeted by victory against the Slovenia to get England through to the next round by a whisker.

Shoppers can turn up at any Asda store with a pharmacy and have their blood pressure checked for free to make sure they are in a good bill of health ahead of the knockout stages when things get really tense.

Maria Barnett, Customer Planner, Pharmacy at Asda commented: “Getting men to check out their health is notoriously difficult and even more so when the football is on, but stress and excitement can raise blood pressure so it’s best to have a test for peace of mind. Shoppers can even pop in during the morning so they don’t miss any action!”

Posted by Asda press team on 25 June 2010, 11:13

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£400m could be saved if every British shopper used Asda’s online price checker

As the Chancellor announces widespread spending cuts, Asda shows shoppers how to plug the hole in their household budgets.

The online price checker, Asda Price Guarantee, has saved Asda shoppers £75m in the last seven weeks since its launch, the retailer announces today. If every British shopper who visits a supermarket each week took advantage of the ‘Asda Price Guarantee’, the nation could save a colossal £400m per week.

So far, over 250,000 shoppers have used the independent price checker that guarantees the lowest priced weekly shop, or the difference plus a penny back. Following the emergency budget announcements, one person every 20 seconds has logged on to asda.com/priceguarantee to ensure they are getting their groceries at the lowest possible price to make every penny count.

more Posted by Asda press team on 24 June 2010, 07:00

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Asda Mums have budget concerns expecting family spending power to fall further

• £6 a week decrease in family spending power compared with the same month a year ago

• 2.6 per cent year on year decrease in discretionary income of average UK household

• Fifth consecutive month of decline in the Asda income tracker

• The cost of spending on essential goods and services continued to rise sharply, increasing by 5.1 per cent year on year in May

• 85 per cent of Asda Mums say a rise in VAT would have the most impact on their family finances

Just hours ahead of the emergency budget, data from the latest Asda Income Tracker showed the average UK family had £6 a week less disposable income this month than a year earlier, the biggest fall since the beginning of the year.

As a result, the average UK household had £210 a week of discretionary income in May 2010, down from £216 this time last year. The cost of living continued to rise at a fast pace, with a 3.4 per cent rise in inflation down from 3.7 per cent in April, putting further pressure on families. Fuel costs remained a concern, with a 10 per cent year on year increase in prices in May. On top of this, with regular pay increasing by 1.9 per cent year on year in the three months to April earnings growth remains below pre-recession levels.

With today’s emergency budget likely to signal even tougher times ahead, almost 85 per cent of Asda Mums said a rise in VAT would have the biggest impact on their family finances, with 60 per cent indicating a rise in national insurance would also be difficult.

Charles Davis, the economist at Cebr who compiles the report for Asda, said:

“Annual growth in average family spending power has been in negative territory for five months in succession. Households are facing the headwinds of above target levels of inflation and muted growth in regular pay. Looking forward inflation is likely to fall back over the course of the year, but the fiscal tightening announced in the budget means the labour market outlook is still weak. Hence, the outlook for disposable income growth remains challenging.”

Andy Clarke, Asda president and CEO, said:

“This month’s Asda Income Tracker really shows how tough customers are finding it out there, even before the emergency budget. There are clearly challenges ahead for ordinary families as the nation addresses the deficit.

“Nevertheless, the best businesses will view this as a call to action, not a time to wallow, whinge, or wonder when the recovery will appear, but a time to do what British business does best – find ingenious, sustainable ways to reduce costs so whatever tough measures are on the way, customers don’t notice a thing. Here at Asda, we’re ready to help customers save money everyday, by working even harder to reduce costs.”

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Posted by Asda Press Office on 22 June 2010, 00:01

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Asda urges tennis fans to boycott over-priced strawberries

As the most famous tennis tournament in the world begins, Asda is urging thousands of Wimbledon-bound fans to score a match point by shunning the overpriced strawberries on sale in the grounds. The traditional berries are being sold at the tournament for a record breaking 25p PER FRUIT this year; the exact same fruit can be brought for a fraction of the price at Asda, and taken into the tournament as part of a picnic.

The fruits from Kent, which arrive at SW19 at 5.30am, are EXACTLY the same specification and are from some of the same farms as Asda’s Elsanta strawberries – the only difference is the staggering price. Whereas a punnet of ten fruits will set you back a whopping £2.50 at Wimbledon, a 300g punnet (more than four times the size) costs just £1.41 at Asda. Wimbledon strawberries are FIVE times the price as the same fruit from Asda.

Andy Jackson, strawberry buyer at Asda comments: “There’s absolutely nothing better than enjoying strawberries with lashings of cream at Wimbledon, but at 25p a fruit this year, they’re likely to leave a nasty taste in the mouth. Our strawberries, which are picked and packed to the same specifications but sold at a fraction of the price, demonstrate just how much the club is ripping off tennis fans. We’re encouraging sport-lovers to boycott strawberries and cream at this year’s championships to send a clear message to the organisers in the hope that prices will be dramatically reduced at next year’s event.”

To reassure tennis fans that Asda’s strawberries compare on quality and taste, the supermarket will be sampling delicious British strawberries outside tube station near the All England Club for spectators to enjoy on their way to the championships.

Posted by Asda Press Office on 20 June 2010, 07:00

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Vinda-roo, Vinda-roo, Vinda-roo, Vinda-roo Nah Nah!

Asda, probably the biggest takeaway in the country, is launching a curry takeaway counter with a difference by asking shoppers to re-name the nation’s favourite dish with names inspired by the England team.

The store has approached Wayne Rooney’s agent to ask if they can officially and legally change the name of their award-winning Vindaloo to Vinda-roo in celebration of a nation’s hopes ahead of the World Cup. Asda is the nation’s favourite curry takeaway and Wayne Rooney is the nation’s favourite football player so the two are perfectly matched.

43 per cent of Asda shoppers have said that they are looking forward to tucking in to a curry whilst watching the World Cup, with the vindaloo being ranked as the most popular at 56 per cent.

Asda is challenging customers to tell them what other footie names they could call their curries’ and the best suggestions could end up on shelf before the end of the tournament. Shoppers could be tucking in to a Lamps Rogan Josh, a Cashley Kashmiri or even a Crouchy’s mango chicken. Shoppers should send their best suggestions to www.asda.com/yourasda for a chance to see their dish out over the counter.

Emma Broadbent, Takeaway counter buyer commented: “Our shoppers are going bonkers for curry in the run up to the World Cup so we have combined the nation’s two favourite things, curry and Rooney, in one tasty takeaway. 92 per cent of our customers will be staying in to cheer on the boys, so why not order in a great value curry, kick back and cheer them onto victory”

Asda is the biggest takeaway retailer in the country and is expecting to sell a massive 25 million kgs or 25,000 tonnes of take-out curry during the World Cup tournament – enough to fill the Royal Bafokeng Stadium in South Africa once over.

Unsurprisingly the store has also witnessed a 150 per cent increase in loo roll sales over the week as fans across the country get ready for World Cup parties and perhaps a little too much of the nation’s favourite.

Posted by Asda press team on 12 June 2010, 07:00

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