The UK’s leading supermarket chain Tesco has hit back at Asda’s controversial price guarantee pledge, by offering customers double the difference back on any product more expensive than its rival.
Over 1,000 everyday items, from fruit and vegetables to bread, meat and medicines, have had their prices cuts as part of a £200 million campaign launched today.
With the cost of fuel and other consumer goods steadily rising at present, a price battle between the UK’s two leading supermarkets can only come as welcome news to cash-strapped consumers.
Richard Brasher, who this week becomes Tesco’s UK CEO, said: ‘Customers are telling us that they are putting a lot of thought into how to manage their household budgets.
‘Tesco cannot influence the cost of heating your home, or the price of your train ticket, or what tax you pay: this is our way of doing what we can to keep household spending manageable.”
Research published by IGD last week found that cost would be the biggest influencing factor for 91 per cent of supermarket customers when deciding what to purchase this year.
Soaring food prices have not been confined to the UK this year, where food price inflation reached 4.6 per cent in January, with global prices hitting record highs according to Food and Agricultural Organization earlier this month.
Whilst announcing Asda’s year-end results last week, CEO Andy Clarke claimed that his company’s price guarantee was a “game changer” which set it apart from its rivals.
Asda was criticised by the Advertising Standards Agency over the clarity of its price comparison marketing at the beginning of February, following complaints from Morrisons and Tesco, but Clarke dismissed the issue claiming that he “would not have spent millions advertising somebody else’s campaign.”
Tesco customers will now be able to compare its grocery prices against its rivals via the Tesco.com website.