Tesco is ditching its brand guarantee to invest in lower everyday prices
TESCO is ditching its popular price-matching policy to focus on lower every day prices for customers, the supermarket claims.
At present, the brand guarantee, which was launched in October 2015, compares the price of items at Tesco against Asda, Morrisons or Sainsbury's.
In order to qualify a customer must buy 10 or more products in-store or online, these can be a mix of branded and own-label products.
Customers are automatically refunded the difference - up to a maximum of £20 - at the till before they pay.
The UK's biggest supermarket claims that just one out of eight transactions receive a refund through the brand match scheme, which will end on July 16.
It also claims that the "majority of customers"; would prefer lower every day prices.
Supermarket price promises compared
NOW Tesco is ditching its popular brand guarantee, how do other price promises compare:
- ASDA - Asda promises to give customers a voucher for the difference if the shop is not 10 per cent less than the next cheapest. It compares prices agains Morrisons, Sainsbury's, Tesco and Waitrose, including own-label items. Shoppers must buy at least eight items and one of those must be considered comparable up to a maximum of £100 a month, from 10 claims. You have to enter a code from your receipt into the Asda website.
- Ocado - If your shop is not cheaper than Tesco.com, then you get a voucher for the difference. It compares own-label goods and you need to spend at least £40 to qualify. It pays out a maximum of £10 per shop and the voucher is valid for 14 days.
- Waitrose - Since 2010 it has been price matching 1000s of everyday items against Tesco prices.
Tesco said that this it has cut the price of over 260 everyday products, by up to 50 per cent, in the last month.
It promised that there would be more price cuts to come on dozens of products.
In November 2016, Tesco promised to match Aldi and LIdl on thousands of own-brand products, despite not including them in its price match scheme.
Last week, the supermarket revealed it was scrapping thousands of household names in a bid to compete with Lidl and Aldi.
Aldi and Lidl have been winning shoppers from the big four supermarkets - Tesco, Asda, Morrisons and Sainsbury's - since the last recession when rising food prices encouraged Brits to shop around.
MORE ON TESCO
Customers can use grocery comparison website to compare the cost of their shop at all the major supermarkets, including Aldi and Lidl.
It's also worth knowing the time when your supermarket starts reducing items with yellow stickers.
Alessandra Bellini, Tesco chief customer officer, said: “Since brand guarantee launched in 2015, we have continued to invest in simpler, lower everyday prices.
"As a result, the scheme is far less relevant for our customers today, and so we are withdrawing it as we focus on offering customers even more straightforward value for money at the shelf edge.
“In recent weeks, we’ve already reduced the prices of over 260 popular products, including own brand and branded favourites, and we’ll continue to work hard to offer our customers great quality food at great prices.”
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