Woolworths will slash prices across a range of popular items as part of a broader reset that the retailer’s boss says draws “a line in the sand” under years of underperformance and will recover market share from rival Coles.

Chief executive Amanda Bardwell, who took over the top job in September, said grocery prices would be cut by an average of 10 per cent across almost 400 products, with the reductions to be focused on its home brands, which offer a cheaper alternative to big-name brands.