Tesco to invest £500m into Big Price Drop campaign

Tesco has announced that it is to launch a major price cutting initiative that will see prices of everyday grocery items lowered. Investing £500m into the project, Tesco believes the move will strengthen its current trade and enable it to gain ground on its rivals.

Starting with a ‘Big Price Drop’ campaign this Monday, the supermarket will reduce the cost of more than 3,000 products - with the initial focus primarily on essential items, such as bread, milk, fruit and vegetables. It is also believed that the investment will see Tesco place more emphasis on promoting its own label ranges, with approximately 1,000 of these products also set to undergo price reductions.

Tesco is to also overhaul its promotions in a bid to simplify them, which will see buy-one-get-one-free offers decreasing and replaced by a focus on cheaper individual items – a move that will reduce families’ waste and also cut the rate of food inflation in half.

It is also changing the way its Clubcard scheme operates, as customers will no longer receive double Clubcard points as of this November. The reasoning for this is that Tesco will instead invest the cash into its new price strategy. However, there is some consolation for Clubcard holders, as vouchers being exchanged for rewards (such as restaurant vouchers) are now worth four times their value, as opposed to three times.

Richard Brasher, the head of Tesco’s UK operations, comments: “Across the country, families are telling us the same thing - their budgets are under real pressure. They want more help today to afford everyday essentials. We have listened carefully and for families facing hard times and looking for genuine savings, The Big Price Drop will cut prices on the products they need to buy the most. We’re giving customers a more straightforward shop - reducing the number of promotions and putting the emphasis on clear and reliable savings that everyone can benefit from.”