Asda has reported another quarter of poor trading as like-for-like sales slumped 5.7% in the first three months of 2016.
Asda has confirmed plans to cut up to 500 jobs in stores and 250 at its head office in Leeds as the retailer battles to protect profits while sales slide.
Asda is considering scrapping the morning perk of free tea and toast for its staff and may also close its canteens in an attempt to cut costs.
Asda is cutting about 200 jobs at its head office in Leeds after the supermarket endured a tough Christmas trading season.
One of the country’s leading retailers has criticised the government’s planned changes to Sunday trading laws, saying they are open to abuse.
Asda boss Andy Clarke has insisted the supermarket is bouncing back after reaching “a nadir” as he revealed the chain’s worst quarterly sales figures.
Tesco’s new chief executive is performing the equivalent of “heart surgery” on the supermarket chain as he tries to revive it, according to the boss of rival retailer Asda.
The fuel price war between the big four supermarkets has pushed prices on the forecourt closer to £1 a litre after Asda said it would cut petrol and diesel by 2p a litre from Tuesday and Tesco responded with immediate price reductions.
Food producers have become cannon fodder in the bitter supermarket price war, according to accountancy firm Moore Stephens, which found 28% more specialist manufacturers have gone into insolvency this year than last.