Tesco unveils next round of Big Price Drop cuts

Titled The New Price Drop, the initiative has been heavily advertised with national press and television adverts.

The grocer is cutting prices on staple items including pasta, bread and cheese under the strapline ‘prices are dropping on your weekly shopping’.

Tesco has called on its customers to vote for the products it would like to add to “the next Price Drop” on its Facebook page.

The new campaign is the fourth wave of the initiative following the Big Price Drop in Autumn, the Big Christmas Price Drop in December and the Big New Year Price Drop that has run from January.

Analysts cited The Big Price Drop as one of the reason Tesco recorded a poor Christmas and issued its first profit warning for 20 years in January.

The new round of the campaign backs up group chief executive Philip Clarke’s claim that the Big Price Drop is a long-term initiative.

Clarke said in January: “We are going to embed the Big Price Drop in the way that we work in the UK. To be a retailer you need to offer low prices on the products people buy every day. We have taken the big and important first step and we will now build on it.”

Tesco claims the Big Price Drop has driven more customers to its stores but they are not putting as much into their baskets.

The grocer will report is full-year results on April 18 when Clarke is expected to reveal his plans to improve the Tesco shopping experience and revitalise stores.