Tesco, the UK’s leading retailer, is investing £340 million in order to cut prices on branded and own-brand goods over the course of January.
Rising VAT and Christmas spending hangovers will make the start of 2011 tough for many consumers, and so Tesco is increasing its ‘better than half-price’ deals to products from brands such as Kellogg’s, Persil, Walkers, Heinz and Cadbury.
These new deals are predicted by Tesco to save its shoppers on average £27.84 per basket of everyday goods.
Carolyn Bradley, Marketing Director at Tesco, said: “January is the most financially challenging month for many families as people recover from the festive season.
“The cost of shopping is more important than ever, but customers should not have to compromise on the quality or taste of the food they eat. Tesco is helping customers with thousands of big price cuts on everyday favourites.”
With consumer spending predicted to fall by £2.2 billion over the first quarter of 2011, major retailers are likely to follow Tesco’s lead in introducing special offers to tempt shoppers in from the cold.
Another promotion being launched by Tesco this week is the ‘Free Upgrade’ deal which will see the quality of many own-brand products improving whilst their prices stay the same.
Bradley added: “Our customers can be confident that Tesco is doing more than ever to help them have a happy and affordable new year.”