Tesco to let shoppers use coupons from rival Sainsbury's in storesComments Off on Tesco to let shoppers use coupons from rival Sainsbury's in stores
Tesco has unveiled a plan to poach customers from rival Sainsbury’s.
Britain’s biggest supermarket announced on Monday that it will be accepting coupons issued by Sainsbury’s under its recently ended “Brand Match” scheme to give customers money off shopping in its own stores.
Sainsbury’s last week called time on “Brand Match” – which gave customers the opportunity to claim money back on certain branded products that would have been cheaper in Asda. Customers have until April 26 to cash in.
It said the programme would be replaced by “lower regular prices” after customer feedback indicated shoppers wanted clearer and simpler pricing.
Tesco will accept any remaining Brand Match coupons until June.
The offer will coincide with Tesco’s own price matching system, the six-month old “Brand Guarantee”. It differed from Sainsbury’s as it gave customers the difference in price at the till immediately after the customer had paid, elimating the need for coupons.
Tesco’s UK boss Matt Davies said: “This is a little help for Sainsbury’s customers from us at Tesco. It also provides the opportunity for Sainsbury’s customers to experience Tesco’s Brand Guarantee, which we launched in October, and has been universally welcomed by our customers.
“Tesco has also invested in bringing down the price of leading brands and have introduced simple, more affordable prices on many of the everyday, own label products customers rely on.”
Tesco has been staging a comeback after a torrid spell marked by sliding profits, a £263 million accounting scandal and pressure from the likes of discounters Aldi and Lidl. Last year it reported the biggest loss in high street history at £6.3 billion.
Chief executive Dave Lewis is widely expected to reveal his turnaround efforts have been paying off when the grocer reports its annual results on Wednesday, with a surprise 1.3% jump in sales over Christmas having carried over to its fourth quarter.
Bernstein’s Bruno Monteyne said Lewis’s strategic shift, including sales of non-core assets, store closures and heavy investment in price cuts, means Tesco is “no longer stuck in the middle”.
“If you want the very cheapest prices then Aldi will remain your choice; but if you want a broader range, popular brands and convenience… and (to) save money on essentials, then there is little reason to look beyond Tesco.”