A Tesco attack on a cut-price promotion by its biggest competitor, Asda, has backfired amid evidence that a vicious high street price war is intensifying.
Historically, the big four Tesco, Asda, Sainsbury’s and Morrisons, have been involved in something of a phoney battle to be named the cheapest mainstream supermarket.
However, evidence is now emerging that they are capping prices and running a host of genuine bargains in a bid to attract customers.
The battle comes against a background of research which shows cash-strapped families and others are actually putting less food in their trolleys than a year ago.
Tesco and Asda have been at each other’s throats in the last six months, while Sainsbury’s and Morrisons have also been dragged into the fray.
The stores have launched a host of tit-for-tat price promotions and advertisements designed not only to talk up their own bargains, but also to undermine the claims of rivals.
Central to the price battle is the Asda ‘price guarantee’ where the store promises to undercut all its mainstream rivals by 10per cent on a basket of groceries.
Tesco chiefs have been infuriated by the deal and have retaliated with a price promise of their own to offer refunds worth double the difference if Asda is really shown to be cheaper on a basket of goods.
Source : Daily Mail
