The grocer has invested£100 million in a discounter range spanning 10 categories, including meat, dairy, bakery, beer, household and health and beauty. The range will initially be displayed in one prominent aisle in stores, and then rolled out to be sold alongside similar lines.
Tesco carried out customer research in the summer across more than 20,000 customers and found that price has not figured so highly on their list of concerns since the 1980s.
“We already offer incredibly low prices and have our Value range for basics,” said Tesco commercial director Richard Brasher. “From today we will offer our customers an incredible range of low-cost brands – from Market Value apples and Trattoria pasta sauces to Daisy washing powder and Pro-Vitamin shampoo. This is discount shopping with all the added quality and service customers want and have come to expect from Tesco.”
Tesco claims its discounter offer could save consumers almost£24 a week on a typical basket of shopping. The range will include 350 new products under the Discount Brands at Tesco label, including Packers Best tea bags and Oatland Oaties biscuits.
Tesco will also cut prices on hundreds of existing own-label and branded products, including Classic Coffee and Market Value Carrots. Prices will also be lowered on a selection of home basics and there will also be a range of Great Value Special Buys on non-food products such as stationery and electricals.
Brasher would not be drawn on whether the launch of the discounter range is in direct competition with discount grocers Aldi and Lidl, but said: “Price is always a war and customers are asking for our help. We need to make sure if there is a war, we will win it.”
Vote on this week's poll (closing on September 23, 2008):
Will Tesco's new discount range slow the growth of the discounters?
1 Reader's comment