Safeway has complained to the Advertising Standards Authority about the misleading price claims made by Tesco.

In recent advertisements, Tesco claims that it is significantly cheaper than Sainsbury's. In further statements, Tesco has made similar claims about being cheaper than Safeway.

Company Profile:

Safeway Plc

Safeway absolutely refutes this claim, and has evidence to support it. Recent data from independent research body, Taylor Nelson Sofres, shows that a Safeway basket is cheaper than both Tesco and Sainsbury's.

At a number of representative stores across the UK, Safeway has made a price challenge to its customers with money-back guarantees if they can do their shopping cheaper elsewhere.

Results of independent tests are impressive. For example, at Safeway Bracknell, Safeway baskets were cheaper 98% of the time when compared with Tesco and Sainsbury's. In Aberdeen, a similar sample of baskets were rechecked at Tesco and Sainsbury's with 92% of baskets being cheaper at Safeway. Surveys at other stores show similar results.

Chief Executive, Carlos Criado-Perez, comments "This Safeway Price Challenge confirms what our customers already know - that Safeway offers some of the best prices and deals in the market. We lead on price investment and independent research confirms that the basket our customers shop in Safeway is cheaper than in both

Company Profile:


Tesco and Sainsbury's."

At the core of Safeway's pricing policy are deep price cuts. These were launched two years ago and offer customers up to 60% off branded and high quality goods. Since then the company has won over a million new customers to its stores. The deals vary locally and change weekly. Safeway was the first supermarket to announce major price cuts this year, slashing £120 million off prices in July.

Although Tesco has made small price cuts on a wide range of goods, it fails to offer deep cut deals. This means that for our customers, the total bill for their shopping basket at Safeway would cost more at Tesco.

Carlos Criado-Perez says "Customers are being misled by Tesco's selective claims. The important thing for shoppers is how much their basket costs at the till, and the quality of that basket. Both independent research and our own independent tests show that Safeway's basket is cheaper than Tesco and it is wrong for a leading supermarket like Tesco to make false claims."

Notes to Editors:

  1. Safeway Price Challenge offers customers at a number of Safeway stores the chance to present their Safeway till receipts to be price matched against a local competitor by an independent pricing agency. If the Safeway basket proves more expensive, Safeway will refund and double the difference.

  2. At Safeway Bracknell, 115 out of 117 baskets were cheaper at Safeway. At Safeway Aberdeen 57 out of 62 baskets were cheaper at Safeway.

To view related research reports, please follow the links below:-

Supermarkets & Superstores

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