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.”

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