Grocery staples including potatoes, butter and mince are at the heart of a new supermarket price battle as Tesco tries to dent the expansion of discounter Aldi by matching its prices.
The supermarket said that branded goods, including Warburton’s bread and Silver Spoon sugar will also be included in the campaign, which will see price-matched products distinguished with a red bubble and large tick on packs. Tesco will send researchers into Aldi twice a week to check prices across the country.
"This campaign will help time-poor and budget savvy customers get Tesco products at Aldi prices on products that matter to them,” said Tesco chief customer officer Alessandra Bellini.
“This move represents a clear determination from grocery market leader Tesco to stem the number of customers defecting to its growing, price-orientated competitor Aldi,” said Thomas Brereton of retail analysts Global Data.
“By targeting core products and naming Aldi directly, Tesco are hoping to break down the widespread image that the discounters offer a significantly cheaper basket.”
German-owned Aldi opened its first UK store in 1990. It now accounts for 7.9 per cent of the UK grocery market, according to analysts Kantar with 875 stores. It plans to open at least another 300 by 2025.
Tesco’s market share is 27.2 per cent, with Sainsbury’s on 15.6 per cent and Asda 15.1%. Rival German discounter Lidl accounts for 6.0 per cent of the market.