Tesco announced its 'Big Price Drop' campaign on 22 September, pledging to cut the price of thousands of items. However, according to trade magazine The Grocer in its 'Grocer 33' survey, shoppers are paying more for their goods than before the campaign. Similar findings appeared in The Guardian and Daily Mail.
HOW I SEE IT
FRANKIE OLIVER, JOINT HEAD, FEVER PR
On face value, one could argue that goods selected in The Grocer are open to constantly shifting price promotions that do not deliver a consistent picture. One could also argue that a few days of negative press coverage verses the scale of Tesco's in-store media and marketing clout is not enough to drive consumers away.
But if you dig deeper, a worrying picture is emerging. Tesco is increasingly being criticised for simply overcharging on other products to make its promotions work, while Asda's price guarantee to be ten per cent cheaper than other retailers seems far more robust.
Asda has also consistently won the Grocer 33 over Tesco in the past year. The 'Big Price Drop' is spin that is fundamentally undermining Tesco's brand promise that 'every little helps' and consumers are getting wise to it.