Tesco has announced a further round of price investment, locking in prices on over 1,000 products until 5 July. The retailer has also dropped milk prices for the first time since May 2020.
The price of Tesco’s core four-pint milk product will drop in price from £1.65 to £1.55 from today. It is making similar price reductions across its milk range, including dropping the price of a pint of milk from 95p to 90p, and two pints from £1.30 to £1.25.
While customers stand to benefit from the price cut, Tesco renewed its commitment to its nearly 500 British dairy farmers which make up its Tesco Sustainable Dairy Group (TSDG). Tesco stated that the price it pays farmers for their milk is set independently from prices in store, meaning farmers will continue to receive a price that reflects the cost of production.
Tesco UK Chief Executive, Jason Tarry, suggested that the continued price-lock on everyday essentials, as well as the drop in milk prices, will help to provide its customers with peace of mind at a time when many people are still feeling the effects of an increase in the cost of living.
“We know that customers are still having to budget carefully, so we’re pleased to be able to reduce prices where we can, and also give them a little extra help by locking the prices of more than a thousand everyday products,” said Tarry.
“Milk is a key everyday staple for so many families. We’ve seen some cost price deflation for milk across the market in recent times, and we want to take this opportunity to pass that reduction on to customers.”
A report this week said Tesco had begun asking suppliers for price cuts amid signs that inflationary pressures are starting to ease in the food sector. However, despite falls in the price of commodities, manufacturers still face rising labour and energy costs.
NAM Implications:
- A pointer for other retailers, hopefully?
