REUTERS/Neil HallTesco CEO Dave Lewis.Tesco is going to automatically give shoppers money off at the tills if they could have bought branded items cheaper elsewhere – a move one leading industry analyst is calling a potential “game-changer”.
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Tesco’s Brand Guarantee, which removes the hassle and inconvenience of price match vouchers, is a direct result of feedback as Tesco seeks to make the shopping trip easier for customers.
The “brand guarantee” scheme means that customers will get the different deducted off their bill if it would have been cheaper at a rival supermarket. It will be interesting to see how Sainsbury etc. respond.
It applies to shopping in store and online – but if you order online or use click and collect the comparison will take place on collection or delivery. We expect its popularity to grow and to put pressure on the competition.
Tesco are introducing a new price-matching scheme that offers shoppers an automatic discount at the till.
The new Brand Guarantee compares the overall cost of a customer’s branded grocery shop against what it would have cost at Asda, Morrisons and Sainsbury’s.
The deduction at the check-out intensifies a price war and is a break from the common practice of United Kingdom grocers issuing customers a voucher to spend on their next visit.
Tesco will hope its latest offer helps revive its ailing fortunes.
How does this price match thing work? What they want is simplicity. You get to the supermarket checkout only to realise you’ve left your voucher on the kitchen table. It also showed that 48% of supermarket shoppers cited the main reason for this as the fact they forget to use the vouchers, while 16% of shoppers said they lose vouchers before they can claim their savings.
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The group, which posted a more than halving in first-half profit last week, is seeking to regain market share lost to the discounters, Aldi and Lidl, with lower and simpler pricing, improved product availability and better customer service. We’ve all been there – you rush out of the house to do your shopping, you’re trying to remember your bags, your list, find your auto keys.
