05 Mar 2020
Posted in Retail
Tesco’s new price campaign is an aggressive attempt to negate the lure of Aldi’s price reputation
Following the news of Tesco’s new campaign to match hundreds of prices against discounter Aldi;
Thomas Brereton, Retail Analyst at GlobalData, a leading data and analytics company, offers his view:
“This move represents a clear determination from grocery market leader Tesco to stem the number of customers defecting to its growing, price-orientated competitor Aldi. By targeting core products (including eggs and sliced bread) and naming Aldi directly, Tesco are hoping to break down the widespread image that the discounters offer a significantly cheaper basket – and reduce the number of customers that switch as Aldi continues its ambitious UK store expansion plans.
“Going after Aldi’s low-price image directly is an aggressive but shrewd move from Tesco; excluding Lidl, Aldi’s shoppers rated price when buying groceries higher as a factor than any other major supermarket. This campaign, combined with Tesco’s other price initiatives – such as the its Fresh 5 offer (a format adapted from Aldi’s Super 6) and its revamped Clubcard scheme (Plus) – suggests that Tesco plans to again use its scale to maintain price competitiveness in 2020.”