Tesco has focused on young families in its latest round of price cuts that reflect the easing of cost pressures in the sector.
The reductions across 50 products include Pampers nappies, Johnson’s Baby Lotion, and its Fred & Flo own-label children’s range.
Non-baby products that have been cut in price include Tesco yoghurt drinks, garlic mayo, and facial wipes, as well as brands such as Macleans toothpaste.
Ashwin Prasad, Tesco’s Chief Product Officer, said: “We know that household budgets remain under pressure, and so I am pleased to announce price cuts across a further range of products, including key products that are popular with young families.
“This latest round of price cuts is just another sign of our commitment to pass on savings to our customers wherever we are able, and we will continue to work with our suppliers to bring down prices on the items that our customers put in their trolley or basket week-in, week-out.”
The move comes after Tesco announced cuts on 500 product lines in June, which were followed by a series of reductions by its rivals as grocery inflation continued its downward trajectory.
Aldi announced this morning that it has lowered the prices on a selection of fruit and vegetable products by an average of 9%. This follows more than 100 price cuts in the past two months.
Julie Ashfield, Managing Director of Buying at Aldi UK, said: “Every week we are working hard to make new savings to pass on to our customers and help ensure we always offer them the lowest grocery prices.
“We know that shoppers are having to make hard choices at the moment, so are doing we can to offer the lowest prices possible. That’s why shoppers continue to switch to Aldi from every other supermarket.”
NAM Implications:
- Price cuts by the mults (and in some cases by the discounters)…
- …will continue until discounter market share increases slow to manageable/tolerable levels for the mults.
- i.e. the real competition is between mults and discounters.
- And suppliers have to decide where this is all heading…
- …and ensure they secure an appropriate place at the table.
