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Source: Tesco

Tesco will replace more than 50 ‘everyday products’ with cheaper alternatives

Tesco is to roll out more own-label and cheaper alternatives across its c-stores, as part of a “major” overhaul aimed at making value more accessible during the cost of living crisis. 

Over the next fortnight, Tesco will start to replace more than 50 “everyday products” including toothpaste, pasta and rice stocked in Express stores with cheaper alternatives, “many” of which will come from its own-label ranges.

Among the products being swapped are branded frozen garden peas, which will be replaced by Tesco’s own-label variety at £1.60 – a fall of 40%, the supermarket said. Other swaps, like Tesco penne pasta and own-label smooth peanut butter will cost “half the price” of the branded products being switched.

For some household products, for example toothpaste, Tesco will switch to cheaper branded lines stocked at “less than a third of the price”. Customers would find the products on average 40% cheaper because of the change, Tesco claimed.

The overhaul is expected to be completed by the end of August.

“We know customers are watching every penny at the moment, so we hope these helpful product swaps will bring down food bills for even more families,” said Tesco convenience MD Sarah Lawler.

“Our Express stores offer unbeatable value on everything from essentials to fresh produce, making healthy food more accessible for the 2,000 communities we serve across the UK. And while our convenience stores don’t have the shelf space to carry the full range of our larger shops, by swapping these products, we’ve been able to make way for even more of our great-value own-brand ranges.”

Supermarkets have faced growing criticism from MPs and consumer group Which? over the lack of value lines stocked in convenience stores.

In its report following its look at profiteering within the grocery sector published last month, the Competition & Markets Authority again highlighted convenience stores as one area where supermarkets could do more to help ease high food bills for consumers.

Although the regulator found no evidence of unlawful competition between the mults, the review noted that “not everyone is able to benefit fully from strong competition, particularly those who cannot travel to large stores or shop online, and therefore may rely on higher-priced convenience stores”.

Tesco said it had made the change after a review of its internal shopping data had shown consumers were “increasingly turning to own-brand products to get great value” during the cost of living crisis.

It becomes the latest major grocer to start adding more cheaper lines to c-stores. In July Morrisons introduced its budget Savers own label into 500 of its Morrisons Daily stores.

That was followed by Co-op in August, which extended its Member Prices across 200 everyday grocery products, as part of a £70m price investment.

Sainsbury’s is yet to make any specific changes to its convenience product lineup in response to the calls, however in April it launched a new value campaign aimed at promoting the lowest priced products within its Local stores.