Tesco launches £200m price cuts

Tesco has marked the week Sir Terry Leahy is replaced as chief executive by stepping up its price war with Asda.

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The supermarket has today (28 February) launched £200m of price cuts on more than 1,000 everyday items including bread, vegetables and fruit.

It has promised to “double the difference” on any of the items that can be found cheaper at Asda.

Customers will be asked to report the products on the Tesco website. A voucher will then be issued for “double the difference”.

The two have been locked in a price war since the new year. Asda launched a “price guarantee” in January, promising to give shoppers a voucher for the difference if their basket was not 10% cheaper than Tesco.

Tesco hit back with ad campaigns rubbishing the offer. It has also complained to the Advertising Standards Authority that ads promoting the guarantee were “confusing and misleading”.

The new front in the price war comes on the day Sir Terry leaves the supermarket after 14 years. He will be replaced by head of international Philip Clarke.

The supermarket has also created a dedicated UK management board.

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