Tesco announces ‘Price Promise’ to win customers

TESCO has announced a push on prices as it battles to win back market share lost to rivals.

Yesterday, the company said its new Price Promise would compare at the tills the overall cost of a basket of branded, own-label and fresh food against the same or equivalents from Asda, Sainsbury and Morrison.

If the comparison shows the Tesco basket would have been cheaper elsewhere, a coupon for the difference in price, up to a maximum of £10, will be issued automatically when customers receive their receipt.

“We’re the first major retailer in the UK to compare our prices against the branded and own-label prices of our competitors and give customers an automatic coupon for the difference,” said Tesco chief executive Chris Bush.

The Price Promise will also cover promotions including half-price and buy one, get one free offers at Tesco and at other grocers.

Sainsbury has operated a similar Brand Match scheme for about 18 months, but this covers branded products only.

Asda has a Price Guarantee that offers to refund customers the difference, via a voucher, if an online price-comparison website does not show that their shopping is at least 10 per cent cheaper than it would be at a rival.