Tesco has announced plans that look set to step up price competition between the UK’s largest supermarkets.
The country’s largest supermarket group has unveiled a a GBP200m (US$324.8m) campaign to lower prices on 1,000 everyday items, including Uncle Ben’s Long Grain Rice, Uncle Ben’s rice, bread, dairy, fruit and vegetables. The group also said that it would offer vouchers to customers who find cheaper prices at Asda. The vouchers will be worth twice the difference, Tesco said.
Customers will be able to check the price of their purchases against Asda on Tesco’s website.
The announcement follows the launch of Asda’s “price guarantee” in early January, where it promised to be 10% cheaper than rivals or it would refund the difference using an online price checker.
Commenting on the plan Richard Brasher, who becomes CEO of Tesco UK this week, said: “Customers are telling us that they are putting a lot of thought into how to manage their household budgets. Tesco cannot influence the cost of heating your home, or the price of your train ticket, or what tax you pay: this is our way of doing what we can to keep household spending manageable.”