Supermarket price war to begin this weekend


There's war on the horizon in the supermarket world and it's great news for customers.

Rumours are circulating that Tesco is going to start a price war this weekend with a "dramatic new offensive" on discounts, says retail industry magazine The Grocer.

Store managers are being briefed and all leave has been cancelled for this weekend so that sufficient staff are on hand to help re-price goods and put up new promotional banners.

All change

Tesco is believed to be planning to abandon its traditional three-for-two deals and short-term offers in favour of simple, long-term price cuts. "Price cutting is usually a smoke and mirrors affair. But I think this will cut through the fog of promotions and concentrate on very low pricing," says Philip Dorgan, at broker Panmure Gordon.

"Most consumers don't want four for the price of three, because they don't want four packets of whatever. They just want it cheaply. This should put Tesco on the front foot."

The move would put significant pressure on the other supermarkets that are running price-match promises. At the moment, Asda promises to be 10% cheaper than rivals on a basket of groceries and Ocado matches a lot of its own-brand goods to Tesco.

Tesco has lost market share to the budget supermarkets in recent months as customers struggle to beat rising prices, and it is well-known that new chief executive Phil Clarke is keen to win back customers from the likes of Aldi and Lidl.

So keep an eye out, Monday could see the outbreak of a price war.

Your Comments

as usual, give with one hand and take away with the other as they are halving the clubcard points available, god forbid their profits should drop

all very well but regular shoppers know how they manipulate prices to their advantage which often change on a weekly basis, for instance cat food, one week its £4.95 then its £4.00 then its back up again, perhaps tescos can explain why they do this as it is a huge difference and does annoy shoppers for sure.

Tesco will only win back customers if they stop their aggressiveness to wards suppliers and planners, reduce their prices, increase their quality, offer more choice, and put back profits in staff education, welfare and customer service.

i was told this week that from 5yrs ago my wage has gone up by 33%.
so has every thing including groceries

About time its a headache with prices so high

About time too. One of the reasons I do not shop at Tesco (my closest shop) is because of two for 1 or 3 for 4 etc. That means if I buy one it is terribly expensive!

YYAAAAYYYY !.. Bring it on!

i do the main shop at tesco but buy all my fruit and veg at aldi as its a lot cheaper. if tesco match the prices i will get my fruit and veg with the shopping.

I use Tesco delivery service for bulk items and somehow expect this change to increase my food bill - I like the promotions on coffee, tea, wine, etc. and wait for the offers to come around.

Tesco is offering 5p off fuel, should I use 2 vouchers and fill up my car, or should I use them seperately to fill half the tank.

As requard to the price war, let us look at the offers and get the best from both Supermarkets!

This starts on Monday 26th Sept - I know because I work for Tesco. Keep an eye out re the Clubcard deals as points will suffer to pay for the price cuts.

tesco will only win back customers from the likes of Aldi when it starts providing fresh produce (especially meat and fruit products) as good as or better than the likes of Aldi.

I totally agree with the above comment. I buy the value cheese slices as they are pretty good quality. I used to pay 65p for them, Tesco's have obviously realised that people are liking the product and are now .............. wait for it ........................
charging £1.22 per pack. DAYLIGHT ROBBERY!! So as far as I'm concerned this price war introduction is a totally farce. I was in there last night picking up some last minute milk and noticed that their big tins of Quality Street, Celebrations etc. were reduced from £10 to £4.50, well not as good a cut as it seems, I saw the same product 2 days earlier for £5.00. Tax payers/Consumers - don't believe anything you read!

Can't have it all, its either cheap prices or freebies make up your minds. Retail customers are totally clueless at times

I shop at Waitrose because I can be sure of the quality and that they treat their suppliers ethically. I don't have to worry about 'sustainable' products as Waitrose does this for me. Their 'Essential' Range is competitive and they excell in customer service.