Tesco prices to be slashed as part of GBP500m campaign

Tesco has confirmed that it will launch a new £500m price cutting campaign – its biggest for 25 years – on Monday.
The supermarket giant’s ‘Big Price Drop’ programme will see prices reduced on more than 3,000 products, including milk, bread, fruit and vegetables, and some non-food lines.
Richard Brasher, the retailer’s UK chief executive, said the price campaign was the biggest in his 25 years with the company and claims it could “halve” the impact of grocery inflation on UK consumers.
Around a third of the products covered by the initiative will be own-label goods. According to Tesco, some of these will be as much as 50 per cent cheaper than branded rival products.
Mr Brasher said the latest campaign marks the start of a fundamental shift in Tesco’s pricing strategy, with the supermarket set to focus “more on the individual prices of products” instead of promotions such as ‘buy-one-get-one-free’ offers.
“We’re giving customers a more straightforward shop – reducing the number of promotions and putting the emphasis on clear reliable savings,” he commented.
He also added that despite the large investment, profit margins at Tesco’s UK business would not be affected.