- £100 million invested to lower another 3,500 prices
- All price cuts published on the net for the first time
- Online price check against other supermarkets expanded to 4,000 items*
£100 million of price cuts, Monday (17 September) confirmed
Go deeper with GlobalData
Tesco as undisputedly the cheapest supermarket in Britain.
The latest wide ranging reductions mean that NO British supermarket is cheaper than Tesco on 10,000 of the most popular products1.
A wide gap has now opened between Tesco and its rivals. For 10,000 of the most popular products, Tesco is now2:
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By GlobalData- 14% cheaper than Safeway
- 12% cheaper than Somerfield
- 8% cheaper than Sainsbury’s
- 1% cheaper than Kwiksave
- 0.1% cheaper than Asda.
And with an extra 1% discount for the 14 million Tesco Clubcard customers, in reality the gap is even wider, as the graph shows (attached).
Tim Mason, Tesco Marketing Director, said “These latest price cuts have been so extensive that it’s taken 10 days to change all the prices in the stores.”
“Over 10,500 best selling products are still cheaper at Tesco than last year. Many are cheaper than 1999. By October last year we’d lowered grocery prices by 11% since 1996. We’ve spent £1.2 billion over 5 years in tactical steps.”
“As the price comparisons show, we are now clearly Britain’s best value supermarket, and with the popular 1% reduction for all Clubcard holders, we are even cheaper still.”
The cuts have been achieved by continually finding new ways to buy better, make efficiency savings, and keep all costs low – to keep reducing prices without sacrificing quality or service.
Surveys of independently collected prices, comparing over 80,000 prices, show Tesco prices are now the lowest.
Cuts in the latest campaign include Tesco Red Vina Mara Rioja £4.49 to £3.79; Tesco Refuse Sacks (20) £2.59 to £1.47; Seven Seas Cod Liver Oil (300ml) £3.79 to £1.99; Tesco frozen baby carrots (750g) £0.99 to £0.64; Pepsi Max (12 x 330ml) £3.49 to £2.89.
Customers will be kept fully informed of the price cutting campaign. All of the price cuts will be listed on the internet for the first time (www.tesco.com).
And the Tesco website that currently compares 1,000 prices against Sainsbury’s, Safeway and Asda will be extended to include over 4,000 products (whether they’ve been cut or not) so customers can see the true picture for themselves.
Mr Mason continued “We recognised in the mid-nineties that customers were becoming increasingly canny about value – and going to greater lengths to seek out low prices. Since that time we have dropped prices by £1.2 billion, at the same time improving quality, range and service which has made us Britain’s most popular supermarket.”
“We strive to be best in all areas. It seems our competitors have chosen not to follow this strategy. Many have abandoned the race to lower prices, and customers have flocked to Tesco to enjoy our offer.”
“As customer numbers grow and our volumes increase, we can lower prices again and further increase our service.”
The latest Tesco price move will be backed by the UK’s largest ever poster campaign – with over 6,000 sites trumpeting the Tesco news.
* From w/c 1 October 2001
1
Average figure taken on 10,000 comparable products2
Average over last 8 weeksExamples of price cuts:
Previous | New | % | ||
Product Description | Price | Price | Price Cut | Reduction |
TESCO FROZEN BABY CARROTS 750G | £0.99 | £0.64 | £0.35 | 35% |
TESCO FROZEN SLICED MIXED PEPPERS 500G | £0.99 | £0.59 | £0.40 | 40% |
TESCO RED VINA MARA RIOJA 75CL | £4.49 | £3.79 | £0.70 | 16% |
COCA COLA 500ML | £0.72 | £0.65 | £0.07 | 10% |
PEPSI MAX 12 X 330ML | £3.49 | £2.89 | £0.60 | 17% |
TESCO READY TO EAT CALIFORNIAN PRUNES 250G | £1.39 | £0.99 | £0.40 | 29% |
SMASH INSTANT MASHED POTATO 176G | £0.89 | £0.69 | £0.20 | 22% |
NESTLE FUNTASTIC MINIS VARIETY 870G | £4.99 | £3.97 | £1.02 | 20% |
TREBOR SOFTMINTS SINGLE TUBE | £0.29 | £0.21 | £0.08 | 28% |
COMFORT CONCENTRATE PURE 750ML | £1.45 | £1.21 | £0.24 | 17% |
TESCO ANTISEPTIC FRESH 500ML | £1.39 | £0.99 | £0.40 | 29% |
| TESCO REFUSE SACKS 20PK | £0.08 | 28% | ||
COMFORT CONCENTRATE PURE 750ML | £1.45 | £1.21 | £0.24 | 17% |
TESCO ANTISEPTIC FRESH 500ML | £1.39 | £0.99 | £0.40 | 29% |
TESCO REFUSE SACKS 20PK | £2.59 | £1.47 | £1.12 | 43% |
HERBAL ESSENCES SHAMPOO (8 variants) 250ml | £1.99 | £1.17 | £0.82 | 41% |
LEMSIP COLD & FLU 10”S ORIGINAL LEMON | £2.85 | £1.42 | £1.43 | 50% |
SEVEN SEAS COD LIVER OIL 300ML | £3.79 | £1.99 | £1.80 | 45% |
LYNX TRIPLE BLADE 4 PACK | £4.49 | £2.98 | £1.51 | 34% |
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