Tesco has refused to be drawn on speculation that they will launch a major price initiative in the UK next week.
Analysts and media outlets have reported that the retail giant is on the cusp of introducing swathing price cuts.
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An analyst note from investment banking group Panmure Gordon said today (21 September): “It looks like the sector’s big dirty secret is about to reveal itself. Market gossip suggests that Tesco is set to launch a significant price offensive next week.”
However, Panmure said it believes Tesco will avoid an all-out price war with a measured response, adding: “We believe that Tesco will be proportionate and it will retain its return on capital targets, which would be a significant signal that it expects to derive medium term benefits for shareholders and that the other levers for higher returns, such as the US, are moving in the right direction.”
A spokesperson for Tesco refused to confirm or deny whether a pricing strategy was imminent. “We don’t comment on speculation,” she said.
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