Tesco to cut prices by 50%

Tesco today said it will slash prices by 50% in the latest round of discounting to hit the UK retail sector.

The supermarket chain said the sale, which starts tomorrow, would focus on Christmas essentials and gifts.

Britain’s biggest grocer said it was cutting prices early on around 1,000 items in response to customers’ reluctance to purchase items which would later be discounted.

Commercial director Richard Brasher said: “Some say that a bit of the pleasure they usually get from buying gifts has gone in the current climate.

“They’ve told us they still want to enjoy a special Christmas – with big presents for their children and a proper Christmas meal – but they want us to help make their money go further.”

Items to be discounted will include a quad bike, down from £80 (€91) to £32 (€36) and champagne flutes, reduced from £12 to £6, as well as seasonal foods such as Christmas pudding.

Earlier this month Tesco revealed its weakest UK sales performance since the last recession after a supermarket price war halved growth in the preceding quarter.

The supermarket posted a 2% increase in UK like-for-like sales, excluding petrol, in the 13 weeks to November 22, down from 4% the previous quarter.

But Tesco said the sales growth decline came as it cut prices to lure in cash-strapped shoppers, resulting in higher sales volumes and customer numbers.

Around 300,000 more customers were tempted into its stores each week by falling prices, according to the group.

Tesco said it was acting on the basis of its own research, which suggested that customers were delaying spending because of concerns about missing out on discounts.