Tesco has announced a further £100m wave of price cuts and promotions on more than 3,000 staple goods as it looks to up the stakes in the ongoing supermarket price war.
The latest reductions by the UK’s largest retailer takes its total investment in price cuts over the last fortnight to £200m and comes a day after Asda lowered prices permanently on at least 1,000 everyday items, with many reduced to just £1.
The new range of promotions, which come into effect today, include four multipack bags of Walkers Crisps for £4, three Hovis loaves for £3, a 200g jar of Nestle coffee for £3 and a kilo of loose green grapes for £1.99.
The supermarket giant will launch a nationwide marketing campaign on Wednesday to highlight the latest cuts and also confirmed that for the first time ever real shoppers’ till receipts will be used to show how Tesco’s prices compare with its major rivals.
Commenting on the move Tesco’s commercial and marketing director, Richard Brasher said: “”This year the cost of shopping will be more important to customers than it has ever been.”
“For years retailers have made claims and counter claims about who is the cheapest. But until now nobody has looked at what shoppers actually put in their shopping baskets to provide a true picture of what customers are really spending.”
Rival supermarket Morrisons has also slashed prices on fresh produce, with selected fruit and vegetables now being offered at £1, including 2.5kg of King Edward potatoes and a pack of seven oranges.
Sainsburys said it plans to expand the number of its low-cost “Basics” products to 630, with half of them priced at £1 or less.
Online consultant Planet Retail said that the new £1 trend by supermarkets is a reflection of the economic crisis and shows that retailers are trying to imitate the performance of single-price stores such as Iceland and Poundland which are thought to be attracting more higher-income earners than ever before.
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