Three of Britain’s leading retail and leisure chains kicked off the New Year with a round of price cuts as they sought to offer a little cheer to hard-pressed consumers in what is expected to be a tough year on the high street.

In the wake of a wave of retailing collapses around Christmas, Asda said it would cut prices on 1,000 lines across its stores –Birds Eye chicken grills will be cut from £2.49 to £1 while Herbal Essences shampoo will also cost £1 against a previous price tag of £1.98 – to help shoppers “make ends meet” in 2009.