Tesco will be cutting prices on hundreds of products in an effort to match the prices of rival-supermarket Aldi.
Products such as Tesco ripe bananas, Tesco whole cucumbers and Warburtons toastie sliced white bread will be reduced in order to compete with the low-prices at Aldi, in a move Tesco says will allow customers to “get Tesco products at Aldi prices on products that matter to them.”
The reduced prices will also be available online, and featured products will show a distinctive red ‘Aldi Price Match’ bubble displayed at the shelf edge and on the Tesco website.
Alessandra Bellini, Tesco chief customer officer, said: “Our customers tell us they want the most competitive prices on the things they buy regularly. This new campaign will help time-poor and budget savvy customers get Tesco products at Aldi prices on products that matter to them”.
“Going after Aldi’s low-price image directly is an aggressive but shrewd move from Tesco…”
Thomas Brereton, retail analyst at GlobalData, offers his view: “This move represents a clear determination from grocery market leader Tesco to stem the number of customers defecting to its growing, price-orientated competitor Aldi. By targeting core products (including eggs and sliced bread) and naming Aldi directly, Tesco are hoping to break down the widespread image that the discounters offer a significantly cheaper basket – and reduce the number of customers that switch as Aldi continues its ambitious UK store expansion plans.
“Going after Aldi’s low-price image directly is an aggressive but shrewd move from Tesco; excluding Lidl, Aldi’s shoppers rated price when buying groceries higher as a factor than any other major supermarket. This campaign, combined with Tesco’s other price initiatives – such as the its Fresh 5 offer (a format adapted from Aldi’s Super 6) and its revamped Clubcard scheme (Plus) – suggests that Tesco plans to again use its scale to maintain price competitiveness in 2020.”