Tesco cuts prices for 30 items and slashes online costs

22nd Apr 2014 14:17

Tesco has cut prices on 30 food items and slashed charges for its online grocery service in an effort to counter the rise of the discounters Aldi and Lidl. The FTSE 100 group has made its Click & Collect service, where shoppers order online then collect in store, free for groceries.Users of Tesco.com can also now select one-hour delivery slots to receive their shopping for a price of £1, which represents a cut of at least £2.50 on many time-slots. The supermarket said the new online costs would mean a dotcom customer taking midweek evening deliveries could save £130 a year, while a Saturday Click and Collect customer could save £111 a year.Customers who took up the new cheaper Delivery Saver plan could save up to £252 a year, it added. The food price cuts will include such items as bacon, baked beans, broccoli, peppers, sugar, lettuce, cucumber portions and certain lines from Tesco's own-brand breads.UK Marketing Director David Wood said by cutting the price of eggs, bacon, tomatoes, bread, butter and baked beans, a family of four who like a cooked breakfast once a week will save around £96 a year.He added: "We never stop thinking about how to make [customers'] lives better and easier, and these new lower prices on every day products will really help families on a budget. Together with £1 home delivery or free Click and Collect for food shopping, our customers are going to make real savings."Under-fire Chief Executive Philip Clarke last week said he would cut prices further if necessary.Shares in Tesco were up 1.4% to 293.78p at 14:30 on Tuesday. OH