Tesco is set to hold a half-price sale on Friday as retailers continue to struggle to pull in shoppers.
The retail giant will cut the price of 1,000 products including Christmas food, drink, toys and gifts.
“Customers are telling us that they are delaying their main Christmas purchases as they wait for bargains,” Tesco commercial director Richard Brasher told the Daily Telegraph.
“Our half price sale reassures customers that we’re not making them wait.”
Earlier this week, Tesco sparked a price war on toys by cutting prices on certain lines by as much as 60%.
Meanwhile, shares in Marks & Spencer slid 12.25p to close on 231.25p yesterday amid concern about its Christmas trading.
The retailer has already held two 20%-off discount days and this weekend is slashing the price of food, clothing, Christmas gifts and home accessories as part of a seasonal promotion campaign.
“M&S disappointed the market with its January trading statement. We fear that it is set to do so again this year,” analysts at Morgan Stanley said.