Tesco in new wave of new wave of price cuts

23 April 2014

tesco NEW Tesco is getting ready to lay down a fresh round of price cuts and a sort-out of its home shopping charges.

The supermarket leader has said it has dropped the price of more than 30 staples, such as bacon, eggs, sugar and bread. Although actual staples remain unaffected.

It is their response to the ongoing war against discount shops such as Aldi and Lidl.

Last week Tesco reported a second year of falling profits, with a 3% tumble - the worst yet since Philip Clarke took over from Sir Terry Leahy in 2011.

Clarke has promised more stable prices, as his shoppers tire of mixed messages pricewise across their shops. Where the Express stores seem to exist in a weird orbit up against its own bigger branches.

So now they've taken the Asda model of 'everyday low price' discounting, in a bid to tackle the permanent threat of the discount shops. Asda themselves have promised to spend £1 billion in cutting prices in the next five years.

With home-shopping a key battleground for the supermarkets, Tesco said it would stop charging for click-and-collect grocery orders. The service, available in 260 of its stores, used to charge shoppers £3 per order at the weekend and £2 on a weekday. Tesco is also to offer one-hour home delivery slots for as little as £1 for the first time.

The changes bring it into line with Asda, which already offers free click-and-collect on grocery orders and a £1 delivery charge, albeit with a two-hour delivery window.

1 comment

  • George C.
    Meh. Okay, so they drop some prices. Which ones have the increased? It's no coincidence that Tesco employ more statisticians than they do quality control staff. They know people's trends: if somebody buys bread, they'll probably buy butter. Reduce the price of one (release bellowing PR about that) and increase the other (keep quiet about that). Tesco still win. Reduce the price of frozen chips (cue PR) on a Wednesday when the stores are quiet; increase the price of ketchup (shh!) on weekends when they're busy. It's not rocket surgery.

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