Following recent calls for supermarkets to make their cheapest lines more accessible to cash-strapped shoppers, Tesco is overhauling the range of products it stocks in its 2,000+ Express convenience stores.
The move will see over 50 everyday products replaced with cheaper alternatives, many of them own-label, with some items less than a third of the price of the products they replace.
Among the lines being introduced are Tesco penne pasta (85p) and smooth peanut butter (£1.65), both of which will cost half the price of the previous branded product stocked in its c-stores. Bags of own-label frozen garden peas (£1.65) will also be available as part of the change, costing 40% less than the branded product they replace.
Meanwhile, some branded lines, including toothpaste, are being replaced by cheaper branded alternatives. Tesco is also cutting the price of some packs of branded nappies in Express stores by as much as 40%.
The supermarket stated that the move was in response to its own internal shopping data, which confirms that customers are increasingly turning to own-label products during the cost of living crisis.
Consumer watchdog Which? has been calling on supermarkets to improve the availability of budget options in their convenience stores so consumers, especially those on a low income, are not paying over the odds because they cannot get to larger out-of-town supermarket stores.
Last month, Morrisons started rolling out some of its entry-level Savers range to its convenience stores across the UK.
Tesco stated that the new items will be introduced to its Express stores over the coming fortnight, with the change-over complete by the end of August.
The group’s Convenience Managing Director Sarah Lawler said: “We know customers are watching every penny at the moment, so we hope these helpful product swaps will bring down food bills for even more families.
“Our Express stores offer unbeatable value on everything from essentials to fresh produce, making healthy food more accessible for the 2,000 communities that we serve across the UK. And while our convenience stores don’t have the shelf space to carry the full range of our larger shops, by swapping these products, we’ve been able to make way for even more of our great-value own brand ranges.”
NAM Implications:
- Tesco penne pasta (85p) and smooth peanut butter (£1.65)…
- …both of which will cost half the price of the previous branded product stocked in its c-stores.
- i.e. impact for brands.
- The issue is the extent to which brands will feel compelled to follow suit in some cases…
- …or suffer brand and sales dilution?
