Tesco to launch supermarket price war

Supermarket giant Tesco is waging a war on rivals as it prepares for the biggest price squeeze since the 1920s.

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The bitter battle will involve Asda, Sainsbury’s, Morrison’s and successful budget chains such as Aldi and Lidl.

Tesco has seen a loss of market share in the last few months and has suffered greatly at Asda’s promise to buy 10% cheaper on all basket foods. Asda’s Price Guarantee campaign has tarnished Tesco’s sales as a result the retailer is set to launch a “dramatic new offensive”, according to retail magazine, The Grocer.

As one of the UK’s largest supermarket chains gears up for Christmas, Tesco is set to move away from promotions to permanently low prices.

One Tesco store manager told The Grocer, “We have been told to make sure we are available this weekend and we understand something big is happening on Monday. The assumption is that it’s a price offensive.”

In preparations for Tesco’s new price war, here are some top tips on how to save money on a food shopping.

1.    Make a shopping list

Before you leave the house to do a weekly shop, check what you have already so that you don’t end up with duplicates and none of what you actually need. Check what you have so that you can plan meals and don’t forget to keep an eye on use by dates so you can freeze items and plan your meals around what needs to be eaten first.

2.    Don’t shop on an empty stomach

If you are hungry and decide to go food shopping you are more likely to give in to temptation and end up purchasing food that is easy to cook/ consume then rather than what may be suitable for your budget and the rest of the week.

3.    Bulk buy

Stock up on items that you use often that keep. Everyday items such as rise, pasta and cereal keep for longer than a week so if you buy in larger quantities it will be more cost effective and last for longer.  There are rumors that Tesco will adopt a countdown strategy, where groups of products will be offered at £% and other bundles at £4, £3, £2 and £1.

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Posted by: Nicola Severn Categories: Finance Tags: , , 5 Comments

5 Responses to Tesco to launch supermarket price war

  1. avatar Alan Smith says:

    I am sick and tired of hearing how Tesco is ‘waging a price war’.
    Fuel in particular is a joke. Different Tesco stores charge different prices…..Why??
    I was travelling in Sussex over the weekend and saw Esso selling diesel at £1.35 Tesco was £1.42. Tesco, in my opinion, are nothing but GREEDY and dishonest. Oil prices fall and then we hear Tesco are leading the way with price reductions. Down 1p and then days later up 2p or more.
    People ask me why the government doesnt step in with fuel prices generally. Thats easy, they would lose revenue. I cant wait to see what happens if someone ever invents a car that runs on water. Until then, Tesco, stop lying to us, we aren’t stupid.

  2. avatar Colin Davies says:

    I agree with Alan, I wish we had an Asda closer. I have noted Rural Tesco charge 3 – 5 pence per litre more than their ‘city stores. Us rural folk need a car as there are few bus services; clearly they are not dealing fairly with their rural customers. Tesco only lead the way with their profits!

  3. avatar Robert Shannon says:

    Tesco is not a competitor in the petrol cash price, very often they are the most expensive with a difference of up the 3p per lit. in stores less than 30 miles apart. I would ask Tesco to explain themselves. Do they not believe in putting Customers First but their main objective is to rob the car owners.
    I fully agree with the comments of the previous two writers.
    Tesco WAKE UP and try to win the hearts and minds of their shoppers.

  4. avatar martyn says:

    i agree with allthe above comments,it seems this has all been said before,price offensives and such”.
    i have a tesco near me that i could throw a stone and hit,…but i would sooner use aldi who(to me)represent far greater value.
    dominating the market with endless store presence is one ,thing,presenting savings (genuine ones,at least)across a spectrum f products(including fuel)…is another me thinks.

  5. avatar Ajay says:

    I was a long standing Tesco customer for many years up until the past year.
    I had noticed my local Tesco was getting dearer in my weekly shop over time, but as it was easy walking distance, I thought I was saving more than if I drove down to another supermarket.
    However last year I moved house and now live walking distance from Asda. I was blown away at the difference. A weekly shop costing me between £9-15 more with Tesco. This is joke. If I had realised this before, I wish I drove as my petrol cost would have been justified.
    I agree with the previous comments, I never fill up petrol at Tesco, it is always 2p more than the other supermarkets.
    I really hope Tesco change for the better. The same thing happened to Sainsbury’s a few years ago, if you get greedy, us consumers will just go elsewhere and you will lose your market share.