Tesco to end Brand Guarantee | IGD Retail Analysis

Tesco has announced that it will end its Brand Guarantee scheme on July 16th in order to strengthen funding in everyday low prices.

Price investment stepped up
The move follows significant investments in price, particularly in fresh lines towards the end of Q1, and more generally across its product offer. These investments mean that fewer than one in eight transactions now receives any refund. Tesco is committed to further price cuts with dozens more reductions on popular products set to to be implemented over the next two weeks.

Price investments lessen importance of Brand Guarantee
Commenting on the move Alessandra Bellini, Tesco Chief Customer Officer, said: “Since Brand Guarantee launched in 2015, we have continued to invest in simpler, lower everyday prices. As a result, 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.”

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Tesco to end Brand Guarantee.