Asda launched an attack on its rivals yesterday, claiming that big one-off promotions and discounts will breed mistrust among consumers.

Andy Bond, the chief executive, forecast that the economic downturn would produce a generation of frugal shoppers focused on low prices and on limiting waste. Retailers that fail to adapt to the new reality would not survive, he said.

A flurry of sales in recent weeks have tried to resuscitate consumer spending in the run-up to Christmas. Today, Tesco will start a half-price sale concentrating on food, drink, toys and gifts.

Mr Bond said that while such moves may stimulate sales in the short term, they will lead to suspicion and confusion in the long run. He told The Times: “It comes down to the basic belief that you will confuse customers. They want a good price and should get it every week. That’s why we’re trading well.

“What’s typical is that companies who have sales will offer a much higher price in the other 50 weeks of the year. In the long term, with putting on sales, you lose people’s trust and that’s no way to run a business. I think it’s a vicious circle that we get customers into.”

Marks & Spencer has had a run of one-day 20 per cent-off sales and said this week that it was offering four-for-three deals on party food. It was cutting the price of women’s coats, knit-wear and children’s clothing by a fifth.

Debenhams, the second-largest department store chain after John Lewis, has been offering sale prices for 13 out of the past 20 days. Others promoting “half-price” deals include Currys, Argos, Halfords, Boots, Comet and B&Q. A closing-down sale continues at Woolworths after its administrator, Deloitte, confirmed that it had failed to find a buyer for the retailer. Mr Bond predicted that there could be more similar forced sales.

Asda, which is owned by Wal-Mart, of America, the world’s biggest retailer, has noted big shifts in spending habits by its customers, who have become focused on low prices and on limiting waste.

Mr Bond said: “My mum and dad grew up during the war and that meant that, even though they were relatively well off, they were still cautious about money.

“I think we’re going to see a return to those more traditional values. In a few years we’ll look back on 2006 and 2007 and it’ll be unbelievable that we spent that much money.”

He added: “After ten years of conspicuous consumption, we are now entering a new decade of frugality. I think people who lose their jobs now, them and their kids will always be more careful.”

Retailers will have to respond by adapting their business models if they are to remain trading under current market conditions, according to Mr Bond. Those with “authentic” low-cost operating models and those that are transparent about how they pass savings on to their customers will survive, he said.

According to Asda, consumers are cooking more food from scratch and shunning expensive ready-meals. Sales of curry ingredients, for example, are up 40 per cent on the year, while sales of some ready-meals are down by a similar amount.

Shoppers are still prepared to spend money on expensive items, but largely as an alternative to going out, with sales of olives up 50 per cent, balsamic vinegar up 70 per cent and champagnes up 100 per cent over last year.

Asda’s regular consumer surveys reveal that shoppers are adopting many different measures aimed at saving money.

A monthly poll of 2,500 people revealed that 40 per cent were cutting back on haircuts, while a 27 per cent rise in hair dye sales signalled many had turned to styling at home.

Consumers are also freezing more foods, buying smaller packages of fresh foods and eating groceries beyond their sell-by date so that they can reduce waste.

Mr Bond said 2009 was likely to be “very tough” for all retailers and forecast flat food price inflation, compared with the big rises that have boosted supermarket sales this year.

He added that Asda was planning for a “reasonable” year.

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