Britain’s biggest retailer is expected to launch an aggressive price war to compete with its rivals.
After a 2.4 per cent drop in like-for-like sales over the Christmas period, Tesco is believed to be about to start slashing prices in an attempt to claw back customers.
Chief executive officer Philip Clarke told the Telegraph its brand needed to work to shift its “baggage”.
Speaking about the rise of discount stores, such as Aldi and Lidl, he said: “You can’t ignore them. No retailer can. You have got to have sharper prices and better quality. But you can’t just be them, because you are not them.”
However, he added how the revamped strategy was not a direct response to the competition, but rather a move that suited where Tesco was in the market at the moment.
The store saw its sales fall 0.4 per cent in the 12-week period to January 4th and experienced a 2.4 per cent drop in like-for-like sales over the six weeks up until February 2nd. Meanwhile, Aldi and Lidl have seen their market shares surge in recent months.
