Tesco takes on Sainsbury’s with checkout Price Promise
Tesco is set to roll out an at-checkout price matching scheme that compares prices and gives customers a voucher if shopping would have been cheaper at a rival.
The scheme is part of its Price Promise scheme and has been piloted in Northern Ireland since November. It is similar to Sainsbury’s brand match scheme but also includes own brand products where there is an equivalent sold at rivals and discounted and promotional prices such as buy one get one free deals.
The scheme is part of its Price Promise scheme and has been piloted in Northern Ireland since November. It is similar to Sainsbury’s brand match scheme but also includes own brand products where there is an equivalent sold at rivals and discounted and promotional prices such as buy one get one free deals.
Vouchers are capped at £10 but can be redeemed in any Tesco store or online up to 28 days after it is issued.
Tesco already offers an online receipt checking tool similar to Asda’s Price Guarantee but offering the service at the checkout would make the savings more immediate and convenient for customers.
Analysts have welcomed the move as a tool to help Tesco regain growth in the UK and encourage loyalty from customers without damaging the bottom line.
Clive Black retail analyst at Shore Capital says: “[Sainsbury’s Brand Match] has reassured Sainsbury’s shoppers and we sense enhanced its value credentials. We also sense that it has surprised its major competitors in its effectiveness … As such, we can see why Tesco has looked at check-out based measures to reassure and encourage its customers to be more loyal.”
“The initiative helps to extol and underscore its value credentials without a material step down in gross margins … Price matching is a measured way to deliver value; we continue to believe that no player wants to commence a ‘price war.”
Tesco declined to comment on speculation that the roll out is imminent but a spokesperson says: “We’re continually looking for new ways to help our customers keep the cost of their shopping down.”
