Tesco is running a ‘VAT-free’ sale on clothing and laptop computers in a bid to regain the initiative on pricing.

The UK’s largest supermarket is cutting prices by 20% on selected items until next month. Non-food marketing director Kari Daniels indicated the sale would be the first in a string of major promotions.

“Tesco’s 20% savings mean VAT-free shopping, whether that’s on luxuries like a fashionable jacket or lovely lingerie or basics to make [shoppers’] lives easier such as laptops,” Daniels said. “Customers can expect more from us in the coming weeks.”

The stunt follows a lacklustre performance by Tesco over the key festive period, when UK like-for-like sales edged up by just 0.6%.

Last week the retailer stepped up its war of words with Asda over the latter’s 10% price guarantee, which Tesco claimed was “misleading” consumers.

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