Tesco ditches 'brand guarantee' to focus on price cuts
TESCO is to scrap its "Brand Guarantee" price-matching scheme, saying that it will instead focus on lowering prices of everyday products.
The programme, which has been in place since 2015, is being axed following feedback from customers.
"Fewer than one in eight transactions today receives any refund at all (under the scheme).
"At the same time, a majority of customers now tell us they would prefer lower everyday prices instead.
"Today we are committing to cuts on dozens more popular products, which will be introduced in stores over the next two weeks," Tesco said in a statement.
When boss Dave Lewis launched Brand Guarantee, Tesco said it was to ensure customers never lose out on branded shops.
Shoppers who purchased at least 10 items including one or more branded product got an instant discount on their shopping.
It meant that customers got money back if branded goods could have been bought at lower prices from Asda, Sainsbury's and Morrisons.
But Alessandra Bellini, Tesco chief customer officer, said: "The scheme is far less relevant for our customers today, and so we are withdrawing it as we focus on offering customers even more straightforward value for money at the shelf edge.
"In recent weeks, we've already reduced the prices of over 260 popular products, including own brand and branded favourites, and we'll continue to work hard to offer our customers great quality food at great prices."