Tesco lowers prices

Tesco lowers prices

Tesco has implemented a series of price cuts on staple products in the UK while simultaneously lowering the cost of ordering groceries online.

The retailer is dropping the price of over 30 products including bacon, baked beans, broccoli, peppers, lettuce and bread.

The company is also offering one-hour delivery slots for GBP1 (US$1.60) on groceries ordered over the Internet, while click-and-collect customers will be able to pick up their shopping free of charge.

It said the move was designed to bring "major savings" to its customers.

The group suggested Tesco.com customers could save GBP130 a year in delivery charges alone - while consumers signed up to its delivery saver subscription service could save GBP252 a year. Tesco has previously suggested that delivery costs represent the greatest barrier to growing online sales. 

The price reductions come as competition on pricing heats up in the UK. Rivals Morrisons and Asda have both announced plans to cut prices in order to woo frugal consumers and fend off the threat presented by the growing market share of the discounters, Aldi and Lidl.

Last week, Tesco booked a near 7% drop in underlying pre-tax profits in fiscal 2013/14.

The company saw a 34 basis point drop in its trading profit margin as it invested in cutting prices and improving its proposition.

However, despite these investments, the group's total full-year sales fell 0.2%, including currency exchange, to GBP70.89bn. In the group's closely watched UK business, like-for-like sales fell 1.3%.

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Major savings for customers as Tesco cuts more food prices and slashes online shopping charges

· One hour Tesco.com delivery slots now available for £1 
· Click & Collect Grocery now FREE across all locations
· Delivery Saver prices are lowered, saving customers up to £252 a year
· Prices have been cut on everyday items that customers regularly buy

Tesco customers are set to make massive savings on their shopping as the supermarket has cut the price of even more food products and is slashing online shopping charges - including FREE Click & Collect for groceries.

From today (Tuesday 22 April), prices will drop on over 30 products including bacon, baked beans, broccoli, peppers, sugar, lettuce, cucumber portions and lines from Tesco's bread ranges. 

Like the food price cuts, the new prices for home delivery and Click & Collect are down and staying down, with one hour home delivery slots now available for £1 and Click & Collect Grocery now free across all locations. Tesco.com now offers more £1 slots than any other UK retailer.

The price cuts mean that Tesco.com customers could save up to £130 a year, while Click & Collect customers could save up to £111 a year. And the 200,000 customers already signed up to Delivery Saver could save up to a whopping £252 per year.*
David Wood, UK Marketing Director at Tesco said: "I'm absolutely delighted we can do this for our customers. We never stop thinking about how to make their lives better and easier, and these new lower prices on every day products will really help families on a budget. Together with £1 home delivery or free Click and Collect for food shopping, our customers are going to make real savings.

"I'm especially pleased that we've been able to make the traditional English cooked breakfast cheaper just in time for St George's Day on Wednesday. By cutting the price of eggs, bacon, tomatoes, bread, butter and baked beans, a family of four who like a cooked breakfast once a week will save around £96 a year."** 

In addition to prices coming down and staying down and the lower online shopping costs, Price Promise continues to give Tesco customers peace of mind that they'll never lose out on price at Tesco, and the new Fuel Save offer rewards them with money off petrol, simply for shopping at Tesco.

Original source: Tesco