Asda sees cut-throat Christmas

LONDON (Reuters) - Price competition between retailers this Christmas will be the most intense for a decade, grocer Asda said on Thursday, as it unveiled the latest in a series of cut-price deals in the sector.

The nation's second-biggest supermarket chain behind Tesco said it was cutting prices on 50 home technology products and accessories, including a Philips Blu-Ray DVD player, an Intempo iPod Dock and Fuji 10 Mega Pixel camera.

The move follows a wave of similar pre-Christmas offers from the group covering music, games, toys and clothing.

Britain's top three supermarkets are all expanding non-food ranges, which tend to attract higher profit margins than groceries, stepping up the pressure on specialist retailers.

The industry is also fighting over the market share of toys-to-DVDs chain Woolworths, which collapsed last Christmas.

"This year will be the most aggressive on price in a decade," Asda Chief Financial Officer Judith McKenna said.

Later on Thursday, Asda will announce third-quarter sales figures as part of a release by U.S. parent Wal-Mart.

Justin King, the head of rival J Sainsbury said on Wednesday that competition this Christmas was "feisty," but stopped short of declaring a price war.