Tesco PLC is to swap cheaper product lines into its convenience stores as shoppers battle the rising cost of living.
It revealed that more than 50 everyday products in its smaller Express shops will be replaced by better-priced alternatives, many from its own-brand range.
The move comes as German discounter rivals Aldi and Lidl have witnessed sharp sales growth in recent months as cash-strapped shoppers seek to trim their shopping bills.
A study from Which? earlier this year also claimed that shoppers who regularly buy groceries from Tesco and J Sainsbury PLC’s convenience stores instead of bigger supermarkets were likely to pay hundreds of pounds more over the course of a year due to the higher price of many items stocked.
On Friday, Tesco said that the own-brand alternatives being switched in to replace other products are, on average, over 40% cheaper.
It said the move is in response to internal shopping data, which shows that price-conscious customers are increasingly turning to own-brand products for better value.
Among the own-brand lines being introduced are Tesco penne pasta (85p) and Tesco smooth peanut butter (£1.65), both of which will cost half the price of the previous branded product stocked, it said.
Meanwhile, some branded lines, such as toothpaste, are being replaced by a cheaper branded alternative.
The new products will be delivered to stores over the coming fortnight, with the changeover complete by the end of August, Tesco said.
Sarah Lawler, Tesco Convenience managing director, said: ‘We know customers are watching every penny at the moment, so we hope these helpful product swaps will bring down food bills for even more families.
‘Our Express stores offer unbeatable value on everything from essentials to fresh produce, making healthy food more accessible for the 2,000 communities that we serve across the UK.
‘And while our convenience stores don’t have the shelf space to carry the full range of our larger shops, by swapping these products, we’ve been able to make way for even more of our great-value own brand ranges.’
Shares in Tesco were down 1.0% at 252.20 pence each in London on Friday around midday.
By Henry Saker-Clark, PA Deputy Business Editor
source: PA
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