Tesco plans major recession price war against the discounters - Have you seen prices go up / down?

Lead deal editor243
Posted 23rd Jun 2020
So, after the majority of lockdown is being lifted on, or before, the 4th of July, Tesco is going to start a price war, well apparently.

Bascially, Tesco want to slash prices across the board including their own brands and the big brands also and don't want the likes of ALDI, LIDL, B&M etc to take advantage like previously.

All promos / offers are expected to go via Clubcard and they'll stop all other promo activity.

Have you noticed grocery prices go up or down? Any specific items or just in general?

Has your loyalty to one supermarket changed over lockdown? Have you chosen a different supermarket to now be your regular place to buy groceries? If so, why?

I think it's good to see what us, as hotukdeals members, think of the above and how much it has changed your shopping habits, if at all!


Tesco is to launch a major new price war against the discounters as it prepares for the UK to face a coronavirus-driven recession, The Grocer can reveal.

The supermarket giant has told suppliers it will not allow the likes of Aldi to gain the sort of price advantage that fired the growth of the discounters following the 2008/9 banking crash.

Tesco has held talks with suppliers to reveal it will launch a drive to everyday low pricing, with brands thrown into the mix alongside its own label armoury.

With CEO Dave Lewis due to deliver Tesco’s first quarter’s results on Friday, the outgoing boss is to massively ramp up the price-matching campaign Tesco launched against Aldi in March, just before the UK went into lockdown.

Whereas the first phase of the campaign was based on hundreds of own label products, with a relative handful of brands involved, Tesco has told branded suppliers they will be expected to match Aldi’s prices in the new strategy. Suppliers have told The Grocer they expect other discounters to be considered in its negotiations.

Tesco’s plan will see the supermarket stop normal promotional activity, with all promotions driven through its Clubcard loyalty card, making them exclusive to Tesco’s 19 million Clubcard holders. Tesco has already been trialling Clubcard Prices as it seeks to ramp up Clubcard as an advantage against the discounters, and this will be expanded.

However, the basis of the new strategy will be driven by core availability, range optimisation and a simpler store operation.

“All investment is to go into the lowest possible retail price,” said a supplier source. “Promotions will be eliminated or have to start from the new lower price point. The message comes from the very top of Tesco and goes across the entire business.

“Apparently there is no flexibility. So we now face a major price war.

“I think this is going to have a huge impact on suppliers,” said another supplier. “Tesco got it wrong in the last recession and Aldi got the jump on them on price and they are absolutely obsessed with not allowing themselves to be outgunned by the discounters again.

“If Tesco really puts the squeeze on, even companies like Coca-Cola, Nestlé and Unilever will have to respond and of course smaller suppliers.

“There is going to be lots of very difficult conversation and plenty of blood on the carpet.”

A Tesco spokeswoman said: We are always working hard to give customers great value. In March, we launched Aldi Price Match, a commitment to match hundreds of Tesco products to Aldi prices.”

Aldi Price Match has been maintained amid the challenges of Covid-19, and already includes a range of branded products along with own-label.

While Aldi carries only a limited range of brands, suppliers expect Tesco’s new strategy to be extended to those serving other discounters such as Lidl, B&M and Home Bargains.

“A recession is inevitable and it’s going to be a very severe one and supervalue or everyday value is going to be the biggest trend,” said a source.

“People like Andrew Yaxley remember very clearly what happened in 2008 when it allowed Aldi to take advantage.”

The supplier source added they believed Tesco was trying to “flex their promotional model to counter some of the key impacts of the outbreak”.

“All retailers are struggling for cash contribution.They have all been selling a lot of low-margin products and doing badly on the high-margin.

“This will allow them to try to set the agenda on margins in their promotions strategy.”

The source also said the impact of Covid-19 had shown the retailer the potential to achieve further large-scale efficiencies in the supply chain, which could see a further major wave of range consolidation, on top of Tesco’s previous Project Reset.

“The biggest impact for brands is not Aldi, it’s actually the other discounters,” said Ged Futter, founder of The Retail Mind. “The number of branded products here is substantially higher than in Aldi, with prices that are lower than Tesco. Can Tesco take on all retailers or will they just focus on Aldi?

“Suppliers will not want to put all investment into EDLP on iconic lines as this will ensure chaos across the whole market with a race to the bottom.”

Source : The Grocer
Community Updates
Top comments
Half of what I buy is due to promos.
If something is regularly selling for £1.25 instead of £2.50 (such as Meridian peanut butter), and it's something that I like, I'll buy it. I'm not going to pay £2.50 knowing fine that a few times a year it will be nearly half price.
Some items are guaranteed to be on offer for 1-2 weeks out of every month so I'll stock up if possible.

Haagen Daaz is £2.50 for half the year somewhere. Not going to pay £4-£5 for that.
Jamaica ginger cake - 75p +/- a few pence or I'll do without. It's a treat and definitely not worth £1.40.

A few pence here and there I might not notice, especially if convenience plays a part, but with say 50% differences, I would shop around.

Still don't like Aldi and Lidl for shopping. Poor selection, queues can be bad and I like my Clubcard points as well
Tesco is more convenient for me and that and Sainsbury also allow me to fill the car up at the same time.

Have to admit we've tried a few Tesco own brand cereals this year and some are better, if not practically the same as Kellogg's ones that cost nearly twice as much.
My mother always buys Tesco own brand jam and marmalade. 20p-30p for a jar of jam and a few pence more for the marmalade, but it's not really any different from the £2 jars that are still 65% sugar with some fruit
I've noticed that my local Tesco Express has seen price increases generally. 5p here, 10p there. Eggs for example. They also seem to have been having trouble with certain things. Freezers mostly empty.
Tesco prices have skyrocketed across the board. At first it was adding 5p onto everything that was £1, then prices moved to £1.25 and now they seems to just make the prices up and think we don't realise/ think we couldn't care.

They've brought out a range that price matched Aldi/ Lidl but the products are so inferior it's laughable. Every tried Stockwell beans? Like beans in a thin red water. Pointless.

I gave up shopping at Lidl because of the queues but I occasionaly make the trip to Aldi and they're actually worlds apart. Never any queues and huge signs saying if there's ever more than 3 people in the queue they open another till and this has been true on every single visit I've made there. I always imagined Lidl and Aldi to be the same but Aldi is far superior. I suppose there's a reason Aldi has won grocer of the year 5 times while Lidl has never won.

Sorry - rant over.
Edited by: "joeyjo" 23rd Jun
Sprat to catch a mackerel. The prices will slowly creep up without noticing & we'll be back to square one again.
243 Comments
"they'll stop all other promo activity" does this mean offers will only be available to people scanning their Clubcard? What about permanent offers such as candy bars & bags 3 for £1.20?

I've noticed Pepsi Max 2 litre was £1 at Asda yesterday but it's gone to £1.98 now so didn't bother posting. Not sure if it's been £1 for a while but couldn't find on hotukdeals search results
Edited by: "andrewworrall1" 23rd Jun
I've noticed that my local Tesco Express has seen price increases generally. 5p here, 10p there. Eggs for example. They also seem to have been having trouble with certain things. Freezers mostly empty.
Are they going to insist offers are only available to those who have the Subscription type of Club card, so they get some money back that way ?
Sprat to catch a mackerel. The prices will slowly creep up without noticing & we'll be back to square one again.
Half of what I buy is due to promos.
If something is regularly selling for £1.25 instead of £2.50 (such as Meridian peanut butter), and it's something that I like, I'll buy it. I'm not going to pay £2.50 knowing fine that a few times a year it will be nearly half price.
Some items are guaranteed to be on offer for 1-2 weeks out of every month so I'll stock up if possible.

Haagen Daaz is £2.50 for half the year somewhere. Not going to pay £4-£5 for that.
Jamaica ginger cake - 75p +/- a few pence or I'll do without. It's a treat and definitely not worth £1.40.

A few pence here and there I might not notice, especially if convenience plays a part, but with say 50% differences, I would shop around.

Still don't like Aldi and Lidl for shopping. Poor selection, queues can be bad and I like my Clubcard points as well
Tesco is more convenient for me and that and Sainsbury also allow me to fill the car up at the same time.

Have to admit we've tried a few Tesco own brand cereals this year and some are better, if not practically the same as Kellogg's ones that cost nearly twice as much.
My mother always buys Tesco own brand jam and marmalade. 20p-30p for a jar of jam and a few pence more for the marmalade, but it's not really any different from the £2 jars that are still 65% sugar with some fruit
andrewworrall123/06/2020 14:36

"they'll stop all other promo activity" does this mean offers will only be …"they'll stop all other promo activity" does this mean offers will only be available to people scanning their Clubcard? What about permanent offers such as candy bars & bags 3 for £1.20?I've noticed Pepsi Max 2 litre was £1 at Asda yesterday but it's gone to £1.98 now so didn't bother posting. Not sure if it's been £1 for a while but couldn't find on hotukdeals search results


Think time will tell!


tawse5723/06/2020 14:41

I've noticed that my local Tesco Express has seen price increases …I've noticed that my local Tesco Express has seen price increases generally. 5p here, 10p there. Eggs for example. They also seem to have been having trouble with certain things. Freezers mostly empty.


Bit sneaky, be good to see what prices will be during the 'price war'


richp23/06/2020 15:01

Sprat to catch a mackerel. The prices will slowly creep up without …Sprat to catch a mackerel. The prices will slowly creep up without noticing & we'll be back to square one again.


Well, this is it.

Are Supermarkets just all playing a game with these 'discounts', will we see actual crazy low prices or will it just be the same promos in a different way via clubcard, nectar points etc
Since we had an Aldi open up locally we barely use Tesco or Iceland, 99% of our grocery sopping is done at Aldi or Jack Fultons. There are plans for a Lidl to come near us soon we have just had a massive poundland open up too which is one that also sells clothing. All we need now is a Farmfoods.
Has your loyalty to one supermarket changed over lockdown? Have you chosen a different supermarket to now be your regular place to buy groceries? If so, why?

Yes stuck with Aldi throughout due to insanely long queues at Morrison and lack of stock in Lidl.

Was really impressed how they handled things.
They were first with security on the door staggering the numbers in store, first to set up cleaning stations and have been kept well stocked.

Will stick with them I think they offer great value.

The only downside for me is the tills. I hate that they throw everything at you so quickly. But I have learnt a system and simply investing in a few heavy duty bags has helped enormously.


I do like the clever own brand names too, like their own brand snickers chocolate bars are called Racer when snickers were previously Marathons
Edited by: "myusernamehasgone234" 23rd Jun
We see past BOGOF and multibuy purchases when other supermarkets let you buy just one at the cheaper price.

They wont change.
Tesco Express stores usually have higher overheads so do charge more. Quite often their prices are a few pence higher than a big Tesco, and the big Tesco has things on promo that are full price in the express stores.

Places like Heron and Farmfoods do do some good deals such as Nuui ice creams for 98p rather than £3.94 at the chain supermarkets (or £1.94 when on offer at half price). Then again, I've seen prices in Heron higher than normal prices at Tesco.

Multibuys sometimes work well i.e. £2 each or 2 for £1.80 and £2 is a normal price elsewhere.
Edited by: "xenole" 23rd Jun
I think fruit & veg are better quality at Tesco compared to Aldi, it lasts longer and there are often good offers.... but I hate Tesco staff in my local, they’re all either rude and completely oblivious to customers (having a laugh on their little headsets with each other) or they’re absolute jobsworths and have a really overinflated sense of their own importance. I’ll stick with Aldi!
Tesco fruit and veg for me is more miss than hit.
A lot of their products have shelf lives of 1-2 days, so fine if you can polish off 500g of grapes or a large bag of spinach in that time, especially if not part of a family group.
Have had fruit go mouldy within a day, or a packet / punnet / carton has some dodgy fruit in it.
(that said, have had a maggot crawling out of a Sainsbury grapefruit in the past and some of their green veg a few days ago looked well past it's best)


.....then my local stores knock 8p off the £2 price as it's got today's date on it
At least Sainsbury tend to do this 2-3 days beforehand.
probably most special offers will be out of stock like the amazon firestick .my wife ordered for click and collect waited 6 days then went to collect at 6 am was then told it was out of stock and was charged £1 extra for click and collect . needless to say we'll not use tesco again
What's a Tesco?

Lidl and Aldi get most of my business and will continue to do so unless they start doing something drastically wrong.
r.soul23/06/2020 15:45

probably most special offers will be out of stock like the amazon …probably most special offers will be out of stock like the amazon firestick .my wife ordered for click and collect waited 6 days then went to collect at 6 am was then told it was out of stock and was charged £1 extra for click and collect . needless to say we'll not use tesco again


ah that's poor
myusernamehasgone23423/06/2020 15:27

Has your loyalty to one supermarket changed over lockdown? Have you chosen …Has your loyalty to one supermarket changed over lockdown? Have you chosen a different supermarket to now be your regular place to buy groceries? If so, why?Yes stuck with Aldi throughout due to insanely long queues at Morrison and lack of stock in Lidl. Was really impressed how they handled things. They were first with security on the door staggering the numbers in store, first to set up cleaning stations and have been kept well stocked. Will stick with them I think they offer great value. The only downside for me is the tills. I hate that they throw everything at you so quickly. But I have learnt a system and simply investing in a few heavy duty bags has helped enormously.I do like the clever own brand names too, like their own brand snickers chocolate bars are called Racer when snickers were previously Marathons


Ditto hate the tills!

We've shopped at ALDI last couple of months as few times unable to get online slots.

We've found them really good value, good prices and pretty well stocked so hats off to them.
tawse5723/06/2020 14:41

I've noticed that my local Tesco Express has seen price increases …I've noticed that my local Tesco Express has seen price increases generally. 5p here, 10p there. Eggs for example. They also seem to have been having trouble with certain things. Freezers mostly empty.


Loca Tesco express is a rip off! Nothing cheap apart from milk and bread
I've noticed some things go down, but Fish has definitely gone up.
Tesco prices have skyrocketed across the board. At first it was adding 5p onto everything that was £1, then prices moved to £1.25 and now they seems to just make the prices up and think we don't realise/ think we couldn't care.

They've brought out a range that price matched Aldi/ Lidl but the products are so inferior it's laughable. Every tried Stockwell beans? Like beans in a thin red water. Pointless.

I gave up shopping at Lidl because of the queues but I occasionaly make the trip to Aldi and they're actually worlds apart. Never any queues and huge signs saying if there's ever more than 3 people in the queue they open another till and this has been true on every single visit I've made there. I always imagined Lidl and Aldi to be the same but Aldi is far superior. I suppose there's a reason Aldi has won grocer of the year 5 times while Lidl has never won.

Sorry - rant over.
Edited by: "joeyjo" 23rd Jun
Up, they used to do 4 cans of beans for £2.00, now you can only buy them individually at 75p a can
They were quick enough to put petrol back up immediately after the initial 'lockdown' was relaxed and we were allowed to travel again. (Morrisons here did the same this morning, up 5p a litre.) Bah Humbug. They aint daft.
41186900-YfqS7.jpg
ddavis23/06/2020 16:06

I've noticed some things go down, but Fish has definitely gone up.


Anything particular you've notice re down in price?
I wonder if we can expect price drops on other things too, the problem being is i've mostly just completed a big spending spludge but I wonder if we will see reductions in things like TV's etc.
Discounters have won favour because they don't take the mick with their customers. The upselling poster scandal of Sainsburies is a case in point. I have least respect/trust for Tescos though ( quality isn't great for their own brand).

Overall shopping split is 90% discounters, 10% others for us.
Half fresh fruit at Lidl/Aldi and half elsewhere.
I realise that Farmfoods is a discounter and Tesco isn't but should there but this much of a variation in prices in goods bought in from a supplier?

I used to get these when I was working next to a Farmfoods and they were £1 each. After a while they went to £1.25 each but they are constantly £2 for 2 now. I saw them on the Tesco website the other day - £2! Both supermarkets must be paying similar prices for them. If anything Farmfoods will be paying more since they are smaller and will be buying less of them. An extra quid profit straight into Tesco pockets on a single item!


41186943-Vea7b.jpg
Edited by: "joeyjo" 24th Jun
Is this post a survey Tesco are doing on HUKD ?
Or these? Always £1 in Farmfoods and always £2 in Tesco. They are taking the pi55!

Sure Tesco could be 25p or maybe 50p more but double?

41186955-wM49N.jpg
Just pure greed on Tescos part.

Sorry - I need to get back to work!!
Edited by: "joeyjo" 23rd Jun
Ah tesco. The first supermarket to stop multi discounts when the lock down started. Our shopping bill went from 75 quid pw to 130. Limited where I live for shops to get food.
I'm on the Tesco Home Panel and have consistently asked for this. "Remove the gimmicks and be competetive"

I hope it's true.
What bothers me with ALDI and LIDL is their ripping off of brands' labelling, i.e. making their products look almost exactly like an established brand's stuff, but with feels like significantly lower-quality ingredients. Tesco and the like do this as well, but they've been significantly more restrained than ALDI, etc. in my opinion (although, I do feel that I've noticed a few more examples of it in Tesco in recent months).

It's quite openly acknowledged in lots of reporting online.

It's ridiculously blatant in lots of cases - when you're at the till, look for the packaging of the little snack pots that, to a casual glance, are essentially copies of "Graze".

I've looked around for news stories about brands fighting back against (what I think is termed as) "passing off", and the companies that do try tend not to be successful.

It leaves a bad taste in my mouth (literally, with some of it) to support this by buying ALDI/LIDL own brands that are using these techniques; also, I think that established brands are more likely to be mindful of the ingredients and sources that they use for fear of reputational damage should something untoward being revealed - I don't think this is as much of a consideration for the ALDIs of the world.

I'm not a fan, but it's Tesco/Morrisons for me for the foreseeable future.
will believe it when i see it. the aldi price match was a sleight of hand - and a joke.
Tesco has never started a 'price war' in its entire existence. It cuts a few headline prices, tells the newspapers it's starting a 'price war', then gets a load of free publicity before its prices return to normal after about three weeks, followed by another 'price war' about three months later, and on and on and on. If they were really price wars, why are they still pretty much always beaten by Asda and the discounters? With Tesco's money, they could easily undercut everyone else by a mile if they wanted to. But they don't.
Tesco fake farms fruit and veg is an example of prices going up in my local extra.
When they introduced the Rosadene (sp) gala apple, pack of 6, it started at 75p, then about 6 months ago it went up to 95p. Two weeks ago, from one week to the next, now they are £1.25. These are supposed to be their sort of economical version!
The "day to day" version is now £1.65, it used to be £1.25. Didn't even look at their "finest" range.
Now they have their bags of "perfectly imperfect" apples, which are cheaper, but they are not always gala, it could be other variety.

Milk, sweet peppers (pk of 3) and cucumbers, have all increased by about 30% in the last few months / weeks.
andrewworrall123/06/2020 14:36

"they'll stop all other promo activity" does this mean offers will only be …"they'll stop all other promo activity" does this mean offers will only be available to people scanning their Clubcard? What about permanent offers such as candy bars & bags 3 for £1.20?I've noticed Pepsi Max 2 litre was £1 at Asda yesterday but it's gone to £1.98 now so didn't bother posting. Not sure if it's been £1 for a while but couldn't find on hotukdeals search results



This is about Tesco not ASDA
LOL, Tesco are a joke, any time I have been in, never seen any bargains.

Any time a deal is posted here it's a wild goose chase...
Edited by: "Jim.N" 24th Jun
Misslovely23/06/2020 16:04

Loca Tesco express is a rip off! Nothing cheap apart from milk and bread




Yes, but if that is your local store and you can't shop anyone else locally then being told it has rip-off prices is just stating the obvious. People already know that.

Some people can't shop anywhere else. They might not have transport to go further afield. They might be old or infirm. During lockdown they might be too afraid to go further and may not have had access to online deliveries.
napster2423/06/2020 16:37

This is about Tesco not ASDA


"Has your loyalty to one supermarket changed over lockdown? Have you chosen a different supermarket to now be your regular place to buy groceries? If so, why?"
Edited by: "andrewworrall1" 23rd Jun
The price of hand sanitizer definitely shot up eveywhere including boots and Superdrug from like 69p for a small bottle to £3.99 or thereabouts
41187089-TnVSm.jpgThe Growers Harvest Apple Juice used to be 55p now 59p to "price match Aldi"
Edited by: "napster24" 23rd Jun
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