BRITAIN’S BIGGEST retailer Tesco has launched another round of price cuts on basic food products and reduced online shopping charges as it attempts to stem a loss of market share to discounters Aldi and Lidl.
Last week chief executive Philip Clarke vowed to win back shoppers with millions of pounds of price cuts after Tesco posted a second straight year of falling profits.
In common with the three other leading grocers – Leeds-based Asda, Sainsbury’s and Bradford-based Morrisons - Tesco has been hit on two fronts, by the discount chains and by Waitrose and Marks & Spencer at the premium end of the market.
Monthly industry data showed Tesco’s UK market share had shrunk to 28.6 per cent, its lowest level in nearly a decade.
Tesco said yesterday it had cut prices on over 30 popular food products, including baked beans, wholemeal bread and salad tomatoes.
The firm also said one-hour home delivery slots would now be available for £1 compared with the previous charge of at least £3, while click & collect grocery - where customers order online and pick-up from over 260 UK locations - would now be free compared with at least £2 before.
A spokeswoman for Tesco declined to say if the latest round of price cuts forms part of the £200m the firm said in February it would invest in lower prices or part of the unquantified “big and bold plan” Mr Clarke talked about last week.
Rivals Asda and Morrisons are also cutting prices.