Tesco announce £500m of price cuts
Earlier we primed you for an impending supermarket price war, with Tesco planning to slash £££s off the prices of ‘stuff’ ahead of the Yuletide binge. Now they’ve spilled the beans on what it’s all about. And they reckon it's 500 million of £££s that will be slashed.
‘The Big Price Drop’ will start on Monday and Tesco will be cutting the price of 3,000 products, including household staples like milk, bread, fruit, vegetables and spices. A lot of the reductions will be in their own brand products, and Tesco say that some of them will now cost half as much as their rivals’ equivalents.
In order to cover the costs, Tesco have said that they’ll be cutting back on promotions, with fewer multi-buy offers as well as bringing the Clubcard double points promotion to an end.
Tesco top knob Richard Brasher said: “Across the country families are telling us the same thing: their budgets are under real pressure. They want more help today to afford everyday essentials. We have listened carefully and, for families facing hard times, the Big Price Drop will cut prices on the products they need to buy the most.
“We're giving customers a more straightforward shop, reducing the number of promotions and putting the emphasis on clear and reliable savings that everyone can benefit from.”
The ball is now in the court of Tesco’s rivals, and we can expect similar braying about price cuts over the next few weeks. Which can only be a good thing for the consumer.