Snap happy Asda to sell off its photo division
ASDA IS set to sell off its photo products division, at the same time as it commits to fair pricing practices after a super-complaint from Which? consumer magazine.
Listed business Photo-Me has said that it is “in discussions” to acquire the division from the US-owned supermarket chain.
They said they have a view to operating the business from within Asda stores but it said “there can be no certainty that a definitive and binding agreement will be reached.”
This comes as the Competition and Markets Authority agreed “specific changes” with Asda, though it insisted it did not have findings against the supermarket.
The CMA’s response comes after a Which? super-complaint into misleading pricing practices in the groceries sector.
The CMA committed to work with supermarkets to ensure that ‘was/now’ offers (reference price promotions) and multi-buy deals are genuine, so shoppers can see when they are getting a real discount and make informed shopping decisions.
Michael Grenfell, CMA executive director, Enforcement, said: “The CMA’s examination of the market, following the super-complaint, found that supermarkets generally take compliance seriously, but there were some promotional practices that could mislead shoppers.
“We welcome the commitment we have received from Asda as well as the engagement from other supermarkets, and expect them all to ensure that their practices are not misleading and that shoppers are better informed and able to choose the products that most suit their needs.
Alex Chisholm, CMA chief executive, added: “This draws the CMA’s follow-up work to the super-complaint to an end. In addition to our work with Asda and the other retailers, we are pleased to see that our recommendations concerning the key legislation and guidance in this area are being taken forward.
“Asda has already started making changes to the operation of its ‘was/now’ and multi-buy promotions. These will be fully implemented by August 2016 and the CMA will check how they are working 6 months later.”
Earlier this month Asda faced backlash over the tender of its £100m marketing account which went to Publicis Groupe without a pitch.
Sales for the Leeds-based supermarket were down 3.9% earlier this month .
