Tesco has frozen the prices of more than a thousand everyday products until 2023 as part of the Low Everyday Prices campaign which goes hand-in-hand with its Aldi Price Match. Tesco says the move is alongside its Exclusively at Tesco brands and exclusive deals through Clubcard Prices, which together cover more than 8,000 products.
It comes as the group posted a 10% fall in underlying retail operating profits to £1.25 billion for the six months to August 27, with like-for-like UK retail sales edging 0.7% higher.
It cautioned that “significant” inflation pressures and a return in shopper habits to those seen before the pandemic was being compounded by customer moves to rein in spending amid the cost-of-living crunch, with the group now expecting annual underlying retail earnings of between £2.4 billion and £2.5 billion – the lower end of previous guidance.
Tesco today said its Clubcard Christmas Savers Scheme will offer customers a bonus voucher of up to £12 when they save their Clubcard Vouchers towards their big Christmas shop. And its toy sale, launched this week, offers savings of up to 50% on kids favourites.
Tesco UK Chief Executive, Jason Tarry, said: “We know times are tough for many customers right now, particularly as we head into the winter months. We hope this extended price-lock commitment gives our customers the certainty of knowing that over a thousand household favourites will stay at the same great price for months to come – helping them budget when they need it most.”
Tesco today also announced the second hourly-pay increase for staffthis year, and a doubling of colleague discounts to support them this Christmas. From November 13, 2022, the basic hourly rate of pay in stores will increase by a further 20p to £10.30 (or £10.98 in London). This means hourly rates at Tesco will have increased nearly 8% this year.
Tesco will double Colleague Clubcard discounts to 20% during the key Christmas shopping period from December 13 to 19.
Ken Murphy, chief executive of Tesco, said: “We know our customers are facing a tough time and watching every penny to make ends meet.
“That’s why we’re working relentlessly to keep the cost of the weekly shop as affordable as possible, with our powerful combination of Aldi Price Match, Low Everyday Prices and Clubcard Prices, together covering more than 8,000 products, week in, week out.
“We’re also investing significantly in our colleagues, with a further boost to pay announced today for our UK stores.”
He added: “Customers are seeking out the quality and value of our own-brand ranges as they work to make their money go further, whether they are switching from branded products, between categories or cutting back on eating out.
“As we look to the second half, cost inflation remains significant, and it is too early to predict how customers will adapt to ongoing changes in the market.”
- Products covered by the price-lock commitment include:
Product |
Current price – locked until 2023 |
TILDA PURE STEAMED BASMATI RICE, 250G |
£0.95 |
SKI STRAWBERRY MOUSSE, 4X60G |
£1.10 |
MCCAIN HOME CHIPS, 2.25KG |
£4.30 |
ORAL-B PRO-EXPERT PROFESSIONAL PROTECTION TOOTHPASTE, 75ML |
£1.99 |
HEINZ BAKED BEANS SNAP POTS, 4 X200G |
£2.49 |
NESCAFE ORIGINAL 3-IN-1, 6 SACHETS 102G |
£0.99 |
JOHNSON'S BABY COTTON BUDS, 200 PIECES |
£0.95 |
ROBINSONS ORANGE SQUASH, 1L |
£1.75 |
