Britain’s Asda warns on profit

LONDON: Struggling British supermarket Asda has warned that required investment in lowering prices and improving product availability and ranges will “materially reduce” profit this year, sending shares in rivals tumbling on fears of a step up in competition.

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Asda, Britain's third largest food retailer after Tesco and Sainsbury's, lost a whole percentage point of market share to its bigger rivals and discounters Aldi and Lid! last year, according to industry data.

Private equity firm TDR Capital, Asda’s majority owner, in November brought back Allan Leighton to be the grocer’s executive chairman, more than two decades after he served as CEO and turned the chain around before selling it to Walmart .