Tesco PLC (LON:TSCO) have made a pledge to the British supermarket industry to try and win back customers from their German counterparts.
Tesco, who are one of the ‘big four’ have seen a mixed time of trading over the last few weeks.
British supermarket habits have shifted over recent years, as many consumers have switched to rivals such as Lidl and Aldi due to cheaper prices, and product offerings at similar quality.
The FTSE 100 listed firm said that they are set to enact a new price match policy, which means that many of Tesco’s own brand products will match the prices that are offered by Aldi.
Recent data from Kantar noted that both Aldi and Lidl had taken a higher percentage of the market, following strong Christmas trading periods. Notable performance also came from Ocado (LON:OCDO) – who stamped their influence on the British supermarket industry.
Tesco said today that it will make sure that “customers are getting competitive prices on these products at Tesco and saving themselves a trip”.
“Prices of the products included will be checked to give customers peace of mind, offering Tesco products at Aldi prices for simple, great value,” Tesco added.
The firm noted that their Finest premium ranges will not be part of the policy, however entry level products will look to match their rivals.
“Our customers tell us they want the most competitive prices on the things they buy regularly. This new campaign will help time-poor and budget savvy customers get Tesco products at Aldi prices on products that matter to them,” said chief customer officer Alessandra Bellini.
Tesco see group sales fall
In January, Tesco gave shareholders a very modest update on its’ recent trading.
Tesco UK and Ireland saw its sales rise over the festive period, however total group sales fell following slumps in Central Europe.
The British supermarket is currently undergoing a review and restructuring program in Central Europe, and this may be the likely cause for the slip.
In the six week period which ended on January 4, the UK & Republic of Ireland sales increased by 0.2% and rose 0.4% on a like-for-like basis, excluding fuel.
Total group sales fell by 1.7%, however, and by 0.8% on a like-for-like basis, however shareholders have not seem to phased.
In the third quarter, the firm saw its grocery sales fall 0.9% compared to a year ago whilst total sales dropped 1.4%.
Across the Christmas period, total sales over the 19 weeks period were down 1.5% year on year to £21.03 billion.
Turning to Asia, the firm saw total sales be equal over the 19 weeks period at £1.93 billion, however sales fell 1.6% on a like for like basis.
There will be a hope that this new policy can increase footfall and take business away from Aldi – who are rapidly expanding and seem to be dominating the British supermarket industry alongside fellow German brand Lidl.