Price cuts attract shoppers to Asda.

(From The Journal)

Byline: Peter McCusker

SUPERMARKET chain Asda says price cuts continued to attract shoppers after it reported a 7.2% increase in second quarter sales.

The UK's second biggest supermarket chain, owned by US retail giant Wal-Mart, said the like-for-like increase, excluding VAT and petrol, was driven by higher sales volumes in the three months to June 30.

Adjusted for the timing of this year's later Easter, sales were 7.9% higher.

The chain has joined rivals in res ducing prices as competition in the sector ramps up to gain custom in the recession. Asda said price cuts had seen food inflation fall to its lowest level for …