By Jonathan Davies

Asda has reported a fall in sales towards the end of 2014 as the supermarket price war continued to take control.

The supermarket said like-for-like sales were down 2.6% in the 12 weeks to January, compared with the same period last year.

Asda described it as a "structural shift in the market". And its chief executive Andy Clarke said the supermarket industry is going through "one of its most challenging and changeable periods in history".

But it plans to spend £600 million this year on investments, including 17 new stores and 150 click & collect sites.

Asda, and the other of the 'Big Four' supermarkets - Tesco, Sainsbury's and Morrisons - have all come under intense pressure over the past year from German budget retailers Aldi and Lidl.

Aldi and Lidl's low prices have taken away market share from the 'Big Four' and caused them to lower prices in a bid to win back customers.