Tesco is looking to further rival its competitors in low prices with the launch of its Big Christmas Price Drop promotion today.

Following on from the £500m Big Price Drop launched a couple of months ago, it will see thousands of prices dropped on everyday items such as bread, milk, meat and vegetables to help during the festive season.

The first Big Price Drop brought in over 100 million transactions through the tills and more than 13 million Clubcard customers, of which 90% saved money.

Richard Brasher, CEO of Tesco UK, said: “In these tough times, customers are understandably concerned about the cost of Christmas, but are still determined to celebrate with their families. We have some great seasonal promotions on offer in stores as you would expect, but for customers on a budget we understand that Christmas is about the products you need to buy each week as well as the treats.”

The national supermarket chain has faced stiff competition on in-store price reductions from Sainsbury’s, which launched a similar cost-cutting promotion called ‘Brand Match’ two weeks after the Big Price Drop. It aimed to rival Tesco and other leading supermarkets, such as Asda, by calculating the price of branded goods in a customer’s shopping basket and offering a coupon for the difference in price should it be more expensive.

Brasher added: “Big Price Drop wasn’t a one hit wonder. It is a rolling campaign to help customers and today we launch the Big Christmas Price Drop – reducing the price of 1,000 more everyday products that reflect what customers need to buy at this time of year.”

Tesco posted its worst quarterly sales performance for two decades in October, with sales falling by 0.9% in the three months to 27 August, excluding VAT, petrol and new stores.