Tesco is planning a major prices blitz next week which sources close to the company are predicting will "fire one of the fiercest salvoes yet" in the ongoing high street price war. Backed by a strong consumer advertising campaign, the offensive is expected across the multiple's entire branded and own label ranges with some non-food price cuts likely to be "around 40%." In addition, the reductions are also likely to be especially prominent within the health and beauty sector, an area where industry pundits have been predicting renewed pricing activity recently. The multiple was saying little about the campaign as The Grocer went to press on Thursday although privately Tesco executives said "this campaign will strongly reinforce our claim that we will not be beaten on the prices of the top sellers." One City observer commented: "We've known for some time that Tesco wanted to hit back at claims that Asda is the cheapest' on a consistent basis. This drive looks like being their response." {{NEWS }}

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