Tesco to launch Big Price Drop
Tesco has announced that it will be launching a major price cutting initiative as it tries to gain ground on its rivals.
The supermarket giant is investing more than £500 million in the Big Price Drop which represents the biggest shake-up in its prices for 25 years. Tesco said the move is in response to the demands of its cash-strapped cuonsumers.
Around 3,000 products will be included in the price cutting initiative of which a third will be Tesco’s own label. The products will be mostly food items and products that customers buy week in week out such as bread, milk, chicken, cheddar cheese and ham. Prices will be cut by about 15% to 20%.
The retailer will also be simplifying its promotions and reducing the number of multi-buys particularly in fresh foods, where customers have said they can drive waste.
Tesco said the cost of the price cuts will be covered by reducing the number of multi-buy promotions and the scrapping of its double Clubcard points reward offer. Instead, customers will receive just one point per £1 spent.
However, Tesco has vowed to improve the exchange rates on the most popular rewards such as Pizza Express and Strada deals from three times to four times the value.
Announcing the Big Price Drop, Tesco UK chief executive Richard Brasher said: “Across the country families are telling us the same thing – their budgets are under real pressure. They want more help today to afford everyday essentials. We have listened carefully and for families facing hard times and looking for genuine savings, The Big Price Drop will cut prices on the products they need to buy the most.
“My message to our customers in these tough times is clear – we have listened and we are going to help. From Monday, you will be able to save more money everyday at Tesco on the essentials you need the most.”
