TESCO has launched a new price-matching offer that could see customers given an immediate discount at the till instead of redeemable vouchers.
The supermarket giant’s 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.
The new Tesco Brand Guarantee scheme could be a game-changer for the industry”NICK BUBB
The scheme for shoppers in store and online applies to branded goods only, therefore excluding cheap own-brand items.
The Brand Guarantee will not include German discount chains Aldi and Lidl.
Matt Davies, chief executive of Tesco UK and Ireland, 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 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 to the booming discount chains, and last week it reported a 70 per cent drop in half-year earnings.
The chain is also still attempting to recover from a massive accounting scandal last year.
The “Big Four” - Tesco, Sainsbury’s, and Asda - have all been attempting to fight off competition from Aldi and Lidl, who have stolen their market share.
Nick Bubb, an independent retail analyst, described the move as a “game-changer” for the retail sector.
“There are a lot of “smoke and mirrors” about most supermarket price cutting campaigns, but the new Tesco “Brand Guarantee” scheme could be a game-changer for the industry, as it does away with money-off coupons in favour of an instant discount at the till.
“It will be interesting to see how Sainsbury etc respond.”