 has announced it will abandon the price match guarantee scheme it introduced back in 2015, as it looks to focus on a broader strategy of price reductions.){kind=link}
Tesco (LON:TSCO) has announced it will abandon the price match guarantee scheme it introduced back in 2015, as it looks to focus on a broader strategy of price reductions.
The guarantee scheme had been introduced as part of a bid to compete with rise of low-cost rivals such as Lidl and Aldi, who in recent years have continued to expand their market share.
Under the price match guarantee, shoppers could claim money back on branded items if they could are cheaper at one of its rival supermarkets.
Back in April, figures revealed that Lidl and Aldi had boosted their market share by 7.3 percent and 5.4 percent respectively in the 12 weeks to 20 May 2018, according to Kantar worldpanel.
“As a result of our continued investment in simpler, lower everyday prices, fewer than one in eight transactions today receives any refund at all,” Tesco said.
“At the same time, a majority of customers now tell us they would prefer lower everyday prices instead.”
Last week Tesco shares rose after the nation’s largest supermarket reported an encouraging set of results for the quarter, after a series of cost-cutting initiatives.
First-quarter sales grew 1.8 percent over the past three months, with total sales rising by 2.3 percent over the 13 week period.
In the UK and Ireland, same-store sales rose by 3.5 percent. Like-for-like sales at the recently-acquired Booker wholesale business jumped 14.3 percent.
The figures suggest that the supermarket’s turnaround strategy is proving effective thus far, steadily improving since it reported its worst ever results back in 2014.
“Our growth plans are on track and we are pleased with the momentum in the business,” chief executive Dave Lewis commented.
“We remain well-placed to serve our customers better and deliver on our medium-term financial ambitions.”
“We are delighted with initial progress on Booker, and are focused on delivering the synergy benefits that our merger brings.”
At the start of the year Tesco announced plans to cut 1,700 jobs as it looks to streamline costs.
Shares in Tesco are currently trading -0.27 percent as of 14.42PM (GMT).