The new scheme launched by Tesco, Brand Guarantee, will compare prices on branded goods against Asda, Sainsbury’s and Morrisons, and shoppers will see their bill reduced if goods cost less elsewhere - even if they are on sale.
But unlike Morrisons’ failed Match and More scheme, it will not include discount chains Aldi and Lidl.
Tesco UK and Ireland chief executive Matt Davies said the supermarket decided against redeemable vouchers as customers found these to be a hassle, with many either losing or forgetting to use them.
“We all know it can be stressful and awkward when you have to rummage through your wallet to find a price match voucher,” he said. “That is why we are ensuring that with Brand Guarantee customers will never lose out on their branded shop by getting money off their bill at the till.”
It marks the latest salvo in the ongoing price war as the supermarkets vie to undercut rivals and bring more shoppers through their doors.
Tesco will hope its latest offer helps revive its ailing fortunes. The supermarket giant continues to lose market share, and last week it reported a 70 per cent drop in half-year earnings.
Morrisons’ Match and More scheme was hailed as the first of its kind when it launched last October. But last Sunday the supermarket said it was revamping the scheme, offering points per pound rather than based on rival pricing.