Tesco gets festive with price cuts
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Tesco has launched a price-cutting drive on its Finest range as it looks to grab customers from upmarket rivals.
The supermarket is cutting the price of more than 200 products in the range between now and Christmas to compete with rivals such as Waitrose and Marks & Spencer. Items on promotion include cranachan cheesecakes and champagne pannacottas.
The supermarket also announced the launch of a Christmas televison campaign that will star Cold Feet actress Fay Ripley and Full Monty star Mark Addy.
News on the discounts comes a week after Tesco announced it was sending out £67m worth of customer loyalty rewards two months earlier than its normal quarterly release in February in a bid to up sales during the festive period.
All of the UKs major supermarkets have launched major price cutting moves in a bid to increase footfall during the Christmas period.
Tesco will announce its third quarter results tomorrow (7 December) with analysts forecasting a 3% increase in sales.
Readers' comments (1)
Danielle Pinnington, Managing Director, Shoppercen | Tue, 8 Dec 2009 3:10 pm
An interesting tactic which suggests that Tesco will grab customers from upmarket rivals. However based on our own experience and research we think this is unlikely to happen. Instead rather than attract new customers, we’d expect current Tesco shoppers to trade up from standard to Finest when on promotion – some of whom may then stick with the better quality product over time.
Given M&S and Waitrose shoppers tend to prefer the edited range in their stores, and the overall shopping experience offered by M&S and Waitrose, it’s unlikely they will switch to Tesco to spend time trawling large stores for the 200 lines of Finest on offer!
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