Tesco and Asda went to war yesterday, as the supermarkets form an orderly queue to proclaim the end of food price inflation.
Freshinfo revealed that Asda’s Andy Bond claimed prices will drop from this point on as his chain slashed the prices of 5,000 lines. Meanwhile, in Cheshunt, Tesco unveiled a range of 350 "discounter-style" branded goods, which it says will provide better quality than its Value range of basics, at prices cheaper than the best-known brands.
Tesco commercial director Richard Brasher said: "We will make sure that if there is a price war we will win it." He vowed to turn Tesco into "Britain's biggest discounter".
The new Tesco brands, will use names such as Market Value, Country Barn and Trattoria. A TV campaign will ensure wide coverage and Tesco will track customers defecting from its rivals through its Clubcard loyalty scheme, and send them tailor-made promotions to get them back.
In larger superstores and Extra hypermarkets, an entire aisle is to be devoted to the new, cheaper brands.
The launch is Tesco’s biggest since it introduced the Value label 15 years ago. It also matched Asda in slashing prices on a range of standard own-label and branded goods. Tesco said the price cuts represent a £100 million investment.
