Another Round Of Price Cuts At Tesco

Namnews, 30th June 2023

The recent rounds of price cuts by the UK’s leading grocers continue, with Tesco announcing today that it is reducing the cost of 500 essential items.

The supermarket is cutting the price of certain packs of own-label pasta, tinned tuna, milk, grapes, cheese and other goods by an average of 13%, saying that it had worked with its suppliers to pass on cost reductions where it could.

The move comes just days after supermarket executives were questioned by MPs over claims they have been profiteering during the cost of living crisis. Representatives from Morrisons, Tesco, Sainsbury’s and Asda vehemently denied the accusations, pointing to the highly competitive nature of the grocery market and the small profit margins they operate with. They blamed rising energy, labour and commodity costs, as well as difficulties with food supplies, for rising prices.

However, with some commodity costs now easing, most analysts believe that food inflation in the UK has now peaked, and the recent rounds of price cuts by the supermarket multiples add to hopes that it will moderate significantly in the months ahead after hitting record highs earlier this year.

NAM Implications:

• This drip feed of price cuts to ‘essentials’ has the benefit of causing rival retailers to follow.
• And overall may reduce the cost of a basket…
• Especially for those willing and able to shop around.
• As good as you get, in the circumstances…