Tesco is set to compete head-on with discounters as it looks to cut the cost of its own-label products.
Last week, Tesco chief customer officer Jason Tarry revealed a new pricing strategy that has already been implemented on 500 of its products, including its Farms brand.
Tarry has said it will be rolled out across the supermarket’s entire 11,000-product own-label range.
Tesco has promised to match the price and quality of Aldi and Lidl products across at least 60% of its entry-level or ‘good’ line-up.
The retailer has also pledged to be as cheap as Asda, and match the quality of Sainsbury’s, in eight out of 10 of its ‘better’ tier offer.
And Tesco stated its premium-tier Finest range would match the quality of the ‘market leader’ on all products.
Tarry said the discounters were formidable, but added Tesco was becoming more competitive with its new pricing strategy.
Tesco has continued to increase its share of the grocery market, with latest data Kantar Worldpanel date revealing the supermarket grew at its fastest rate in three years.