UK: Tesco cuts prices ahead of Competition Commission report
By Catherine Sleep | 2 October 2000
Leading UK multiple Tesco has announced a new wave of price cuts, the second since January. Some product prices will be lowered by as much as 20% and the overall package of price cuts will wipe £55m off 1004 items. Tesco claimed that the cost of an average shopping trolley would be slashed by 11% for a pensioner, 9% for a young family and 12% for a student.It is unlikely to be a coincidence that the move comes just hours ahead of a report from the UK Competition Commission following a two-year inquiry in supermarket profitability and supplier relations. While the report is expected to exonerate the supermarkets from the worst charges of anti-competitive behaviour, the majors will certainly be in the spotlight so news of price cuts is timely.An interim report from the Commission cleared the big five - Tesco, Sainsbury, Asda, Safeway and Morrisons - from excessive profiteering, and competition in the sector has been sharpened since the inquiry began. This is primarily as a result of the acquisition of Asda by Wal-Mart, the world' leading retailer.
just-food articles are only available to registered users and members.
Join now for increased access
There are various access options to choose from. All provide instant access to the latest news, insight and expert analysis.
If you’re already a member, login here.
Leading UK multiple Tesco has announced a new wave of price cuts, the second since January. Some product prices will be lowered by as much as 20% and the overall package of price cuts will wipe £55m off 1004 items. Tesco claimed that the cost of an average shopping trolley would be slashed by 11% for a pensioner, 9% for a young family and 12% for a student.It is unlikely to be a coincidence that the move comes just hours ahead of a report from the UK Competition Commission following a two-year inquiry in supermarket profitability and supplier relations. While the report is expected to exonerate the supermarkets from the worst charges of anti-competitive behaviour, the majors will certainly be in the spotlight so news of price cuts is timely.An interim report from the Commission cleared the big five - Tesco, Sainsbury, Asda, Safeway and Morrisons - from excessive profiteering, and competition in the sector has been sharpened since the inquiry began. This is primarily as a result of the acquisition of Asda by Wal-Mart, the world' leading retailer.
- Unlimited access to all the latest global food news and insight
- Expert analysis that puts the news into context
- Exclusive interviews with leading industry figures
- Monthly management briefings with detailed analysis on hot topics
- Personalised RSS feeds and email newsletters
- 10-year archive of news, insight and intelligence
- Discounts on just-food market research
- Plus much more
If you’re already a member, login here
More articles related to this one
HUNGARY: CBA is biggest supermarket, beats Metspa, Tesco
Locally owned food retailer CBA is Hungary's biggest supermarket, according to the Budapest Business Journal, which cited statistics compiled by AC Nielsen for trade journal Mai Piac.
UK: Tesco; beware the Wal-Mart effect (COMMENT)
Not content with pocketing one in every three pounds spent on groceries in the UK, the supermarket giant Tesco has now become the first British retailer to smash the £2 bn ($3.78bn) profit barrier. However, Tesco should beware the pitfalls of high street omnipotency - consumers' perception that it has grown too powerful could damage its image in future.
UK: Tesco profits rise to over £2bn
Tesco, the UK's biggest supermarket chain, has today (Tuesday) reported a 20.5% rise in pre-tax profits to £2.029bn (US$3.84bn) for the 52 weeks ended 26 February 2005.
