Tesco has picked up its second victory of the Grocer 33 year, beating Asda by 54p in a tight week.
Asda wants to establish a 5%-10% price gap over full-range rivals. But Tesco and Sainsbury’s have made that difficult. As food prices dropped by 0.4% in October, the biggest monthly fall in five years [BRC], Britain’s first and second-largest supermarkets went further. Our basket cost 11% less month on month at Tesco and Sainsbury’s, while Asda’s was down 0.3% month on month.
Tesco’s win was powered by deep discounts. Its £81.04 basket featured 11 price cuts, including on Remedy kombucha and Filippo Berio olive oil, shaving £10.20 from its total. Pro-rating for its four additional multibuys extends its winning margin to £1.19.
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A special mention goes to premium own-label lemon curd yoghurt. It was featured in Asda’s latest round of Rollback promotions, with the price dropping from 98p to 82p on 7 October. A week later Tesco responded with a Clubcard promotion which took its price down from £1 to 75p to become one of Tesco’s four exclusively cheapest items this week.
Asda’s £81.58 basket was cheapest on 13 lines and exclusively so for 10. EDLP was evident in several areas where it was cheapest without promotions, including walnuts, roasted chicken drumsticks and lemon loaf cake. Promos were present but shallower: its six price cuts were the fewest across the retailers and its 5.3% saving the lowest.
Tesco was 1.4% cheaper than Sainsbury’s (£82.18) and 6.1% cheaper than Morrisons (£86.31), where prices rose by 4.6% month on month, the highest of all retailers.
Waitrose’s £98.10 basket had no exclusively cheapest items. Tesco was 17.4% cheaper.
Cooked meat prices are amongst the biggest price rises, with corned Beef and chicken drumsticks up 17% and 13% year on year.
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