At a press conference to present its half-year results, the retail group’s chief financial officer Laurie Mcilwee says that customers “got” the price cuts.
The impact on sales will not be seen until Tesco reports its results for the third quarter later this year. The supermarket is hoping the activity will arrest declining sales, which fell 0.9% at stores open for a year or more in the three months to 27 August.
Mcilwee said that the price drive will hit second-half profit, which is expected to be flat because of lower margins.
Speaking at the same event, Philip Clarke told reporters that some of the items reduced will change to match the changing seasons and customer need but the items that “are on the nation’s shopping list” will continue to be priced lower.