Tesco is staying tight-lipped over reports that it is set to launch a range of own-brand products in the UK in a bid to claw back customers turning to cheaper rivals.
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The campaign, which is said to be aimed at driving down prices in the retailer’s own-brand product range, is intended to tackle the “Aldi effect” which has recently seen cash-strapped shoppers turn to discount chains as food bills soar.
When contacted by just-food today (14 July), a spokesperson for Tesco said: “We don’t ever comment on future commercial plans but we do of course already compete with the hard discounters through our Value range, which offers low prices and great value on hundreds of products. Tesco is a full range, full service grocer which means customers can find everything they need at great prices without having to shop around.”
German discount retailer Aldi recently announced plans of a GBP1.5bn (US$2.6bn) investment for the UK market as it looks to further tap into consumer concern over rising food prices.
The company has outlined plans to build a store a week in the UK, where it is winning over consumers with its low-prices amid the economic downturn in the country.
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By GlobalDataAldi and rival discounter Lidl both saw “very strong year-on-year growths” with sales rises of 21% and 13% respectively, according to the latest figures from research analysts TNS.
However, Tesco, while marginally losing its share of the UK grocery market with a growth in sales of only 5%, still enjoys double the market share of its nearest rival Asda, according to TNS.
Tesco accounts for 31.2% of UK grocery sales, TNS said, while Asda’s share stands at 16.8%.
