- In the UK, both Tesco and Wal-Mart’s Asda Group have announced major price reductions as their battle for supremacy continues. Reports say that Tesco has announced that it has cut prices overall by the equivalent of almost $130 million (US), which the company says is part of a long-term strategy that has cut prices by more than a billion dollars since 1998. At the same time, Asda has announced an upcoming price cut on its George line of clothing; as reported below in The Balance Sheet, the George brand drove the company to a strong Christmas season.
- A dispute has broken out between Ahold and the Chilean supermarket chain D&S over the terms of an acquisition by Ahold of 10 of its stores in Argentina. The argument is over price. Ahold agreed to pay $90 million (US), according to reports, but now wants to make the payment in pesos -- which, because of the devaluation of the peso, would reduce the price to less than $40 million.
