Tesco UK cuts more food prices and slashes online shopping charges

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Supermarket claims family of four who like a cooked breakfast once a week will save around £96 a year



23 April 2014

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Tesco has dropped the prices of more than 30 products in the UK since Tuesday (22 April), including bacon, baked beans, broccoli, peppers, sugar, lettuce, cucumber portions and lines from Tesco’s bread ranges.

The supermarket has also slashed online shopping charges – including free ‘Click & Collect’ for groceries.

In a press release, the retailer pledged to keep these charges and prices down, stating: "Like the food price cuts, the new prices for home delivery and Click & Collect are down and staying down, with one hour home delivery slots now available for £1 and Click & Collect Grocery now free across all locations. Tesco.com now offers more £1 slots than any other UK retailer."

The price cuts mean that Tesco.com customers could save up to £130 a year, while Click & Collect customers could save up to £111 a year. And the 200,000 customers already signed up to the ‘Delivery Saver’ service could save up to a whopping £252 per year.

According to the supermarket, by cutting the price of eggs, bacon, tomatoes, bread, butter and baked beans, a family of four who like a cooked breakfast once a week will save around £96 a year."

The retailer added that its new ‘Fuel Save’ offer rewards customers with money off petrol, simply for shopping at Tesco.

However the National Farmers Union (NFU), has spoken out about its concerns over the supermarket’s recent levels of price cuts on staple food items in the retail sector.

It stated: "We are maintaining regular dialogue with Tesco’s to ensure that any price cuts or promotions are not making their way back to the farm gate. We will continue to monitor the situation closely."

Farmers groups were likewise keen to highlight their reservations last month when Tesco cut the cost of four pints of milk from £1.39 to £1 in the UK as part of a £200m initiative to lower the prices of popular food staples.

Tesco said the price paid to the 650 farmer-suppliers in its Tesco Sustainable Dairy Group will not change. However Farmers For Action chairman David Handley claimed that cutting the retail price hurt the image of British milk.

"My big concern is you are taking a high-value milk product, putting all that effort into it, and [they are] selling it cheap," said Hanley. "What is the point of doing all that when you send out that message?"

NFU chief dairy adviser Rob Newbery said: "Farmers do not set retail prices, but we will be monitoring the situation to ensure this short-term marketing effort does not have an effect on farmgate milk prices now and further down the line."



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