Friday, 5 November 2021

Tesco Slips Down Price Ranking

Despite moves to improve its competitiveness, particularly against the discounters, a price ranking has found Tesco to be one of the most expensive supermarkets in the country.

The analysis by consumer watchdog Which? compared the prices for a basket of 23 everyday items throughout October, both own label and branded.

With a total of £28.64, Britain’s largest grocery retailer came in sixth place – third from the bottom and only ahead of Ocado (£29.95) and Waitrose (£33.81).

Aldi remained the cheapest overall, at £24.24, just ahead of Lidl on £24.97. Asda was third and the cheapest big four supermarket, with the basket costing £25.94. It was followed by Sainsbury’s (£27.71) and Morrisons (£28.31).

Which? also carried out a more extensive survey covering 77 items. This included more branded items, and so Aldi and Lidl were excluded.

Tesco also had a poor showing in this analysis, coming second from bottom as shown below:


NamNews Implications:
  • Given upcoming pressures on consumer disposable income…
  • Aldi’s 15% price advantage over Tesco has to make a difference.
  • And even on a branded-only basis, Asda has an 8.6% advantage over Tesco.
  • Add a large dose of inflation…
  • …and budget for an escalation of retail price war?
  • (Tesco is not going sit on the sidelines while Aldi capitalises on this price advantage in the coming inflationary Winter...)

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