Tesco has announced that it is cutting the price of 222 own label and branded products in its 2,000+ Express convenience stores.
Essentials such as milk, bread, pasta, coffee and cleaning items have been reduced in price by an average of more than 10%.
The move comes in the wake of thousands of price cuts Tesco has made in its larger stores in recent months.
The group’s CEO, Ken Murphy, commented: “Today’s round of price cuts on more than 200 lines in our Express stores underlines our commitment to offering great value to Tesco customers. Whether you are picking up coffee and milk for the office or a loaf of bread and a tin of soup on the way home, our Express stores offer both convenience and great value.”
The development comes amid a growing battle for customers in the convenience channel. Last month, Sainsbury’s rolled out its Aldi Price Match scheme across over 800 convenience stores, while Morrisons has introduced its More Card loyalty scheme to its Daily convenience stores.
NAM Implications:
- UK consumers were always uncomfortable with paying different prices for the same product.
- i.e. they would not factor in the benefits of closeness to home, full range at superstore etc.
- Tesco can now ‘kill two birds with one stone’…
- …by stabilising price differences across formats.
- …whilst making convenience more competitive.
- Others will follow…
