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In the UK, Tesco and Asda are at it again.

Bloomberg reports this morning that Tesco and Walmart’s Asda Group are engaging in a renewed price war, with both companies making major price reductions for the second time in 2009.

Tesco says it is reducing the prices on 3,000 “every day” items, and Asda says it is cutting the price on 5,000 SKUs.

Both companies, the story notes, are stepping up their competitive efforts to compete with Aldi and Lidl, discounters that seem to be making inroads in the British market.

“With the country in recession, we need to do all we can to lower the cost of the weekly shop and do the right thing by our customers,” said Darren Blackhurst, Asda’s chief merchandising officer.

And Tesco CEO Terry Leahy said that he expects suppliers to cut their prices to help shoppers financially squeezed by the recession.

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