Supermarket giant to rival Aldi after slashing price of 222 products at smaller convenience stores across UK
A SUPERMARKET giant is set to rival Aldi after slashing the price of 222 products at its smaller convenience stores across the UK.
Tesco made a major discount announcement to help reduce prices at its Express stores.
It confirmed that it has extended its Aldi-price match scheme to its local outlets.
Tesco CEO Kevin Murphy said: "[The] round of price cuts on more than 200 lines in our Express stores underlines our commitment to offering great value to Tesco customers.
"Whether you are picking up coffee and milk for the office or a loaf of bread and a tin of soup on the way home, our Express stores offer both convenience and great value."
This comes as research from Which? also showed how shopping at a convenience store versus a large supermarket can be incredibly costly.
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Research shows customers are currently paying 10% more on average for the same item in smaller convenience-style shops than in main supermarkets.
It found that shoppers using local branches could be paying up to 20% more than at larger stores.
This decision could cost you a whopping £800 extra on your food costs each year.
The research compared the cost of 42 grocery items at convenience chains Morrisons Daily, Sainsbury's Local and Tesco Express against prices at their full-size supermarkets.
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It found the biggest price difference was at Morrisons Daily, where shoppers paid 21 per cent more on average.
While Sainsbury's and Tesco had less variation in prices, Nectar members could still be paying an average of 14 per cent more at Sainsbury's Local.
It also concluded that Tesco Clubcard holders could be charged 11% more at Tesco Express.
For example, despite offering a Clubcard discount, a pack of six Mr Kipling Bakewell Slices had a significant discount in price.
Costing £2.32 on average at a Tesco Express, it was costing shoppers at a large Tesco just £1.50, a shocking 54 per cent difference.
What is loyalty pricing?
You may have heard of loyalty pricing, but do you know what it is?
Sainsbury's, Tesco and Morrisons are three supermarkets that offer customers signed up to their loyalty schemes exclusive discounts - known as loyalty pricing.
All three retailer's schemes, Nectar Card, Clubcard and More Card, are free to sign up to as well.
The obvious advantage to loyalty pricing is that you can save potentially hundreds of pounds a year on your shopping, all without spending a penny.
But different supermarkets offer exclusive discounts on different products, so do some research before doing your shopping.
Either way, be wary of supermarkets artificially inflating prices to make it seem like you're getting a better deal than you are.
A previous investigation by consumer group Which? found Sainsbury's and Tesco have increased the price of everyday goods then slapped loyalty prices on them thinking customers wouldn't notice.
Either way, it's worth shopping around though.
Supermarkets change their prices all the time, sometimes multiple times daily, so it's worth researching to ensure you're getting the best price on an item.
You can use websites like Trolley to see how the major supermarket's compare in terms of price on any number of goods.
Even basics such as bread were more costly at local stores than main ones.
A medium white Hovis loaf costs 12% more at both Sainsbury's Local and Tesco Express.
Morrisons Daily was an even worse offender, having a 14% uptick in price.
How to cut the cost of your grocery shop
SAVING on your shop can make a big difference to your wallet. Here are some tips from comparison site Money.co.uk about how you can cut the cost of your shopping bills:
- Write yourself a list – Only buy items that you need. If it isn’t on your list, don’t put it in the trolley
- Create a budget – Work out a weekly budget for your food shopping
- Never shop hungry – you are far more likely to buy more food if your tummy is rumbling
- Don’t buy pre-chopped veggies or fruit – The extra they’ll charge for chopping can be eye watering
- Use social media – follow your favourite retailers to find out about the latest deals
- Be disloyal – You may want to go to different stores to find the best bargains
- Check the small print – It’s always worth checking the price per kg/lb/litre when comparing offers so you’re making a like for like decision as a bigger box won’t necessarily mean you get more
- Use your loyalty cards – Don’t be afraid to sign up to them all. They all work slightly differently – work out what bonus suits you better and remember to trade in your points for additional rewards
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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