Supermarket price wars: Tesco, Waitrose make new price pledges

Upmarket Waitrose cuts prices by 14% while Tesco beefs up Aldi Price Match scheme.

Tesco and Waitrose have become the latest supermarkets to roll out new price promotions as the cost of living crisis continues to hammer household budgets.

The Office for National Statistics revealed last week that inflation had actually eased slightly to 10.1% in January, but food price inflation remained at a near-record high of 17%.

As the cost of the typical supermarket shop has spiralled, all the major stores have been rolling out various price cuts and promotions in a bid to lure hard-pressed shoppers.

Tesco expands Aldi Price Match

The UK’s biggest supermarket has ramped up its price match campaign with Aldi, adding a further 50 items to the list.

The new additions include cereals, tinned food and pasta sauces – all of which are Tesco own-brand products.

It means the company is now price-matching Aldi on a total of 669 items. Head this way to see the full list.

Commenting on the move, a Tesco spokesman told The Retail Gazette: “Our Aldi Price Match range is one the key ways we’re helping customers keep down the cost of their weekly shop, giving them great everyday value on hundreds of basics, from bread and beans to yoghurts and sandwich fillers.

“Alongside Aldi Price Match, we’ve locked the price of more than a thousand household staples until Easter and we offer exclusive deals and rewards through thousands of Clubcard Prices.”

Waitrose announces 300+ price cuts

Waitrose has also taken its first steps into the supermarket price war, with the upmarket store pledging to spend £100 million on cutting prices.

More than 300 items are affected including various fruit & veg, dairy and tinned food, most of which sit in its own-brand Essentials product range.

Waitrose said in a release that prices will fall by an average of 14%, but a quarter of the items will fall by 20% or more.

Examples of Waitrose price cuts

Product	Old Price	New Price	% Reduction
Waitrose Essential British Roast Ham Slices 80g - British and outdoor bred	£1.50	£1	33%
Waitrose Essential Mature British Cheddar Strength 4 160g - made from British milk	£2.10	£1.50	28%
8 Waitrose Essential pork sausages - British and outdoor bred	£2.65	£2.00	24%
Waitrose Essential Savoy Cabbage British and LEAF accredited	90p	70p	22%
Waitrose Essential Frozen Garden Peas 725g - British and LEAF accredited	£1.20	£1	17%
Waitrose Essential Carrots 1kg - British	60p	50p	17%
Waitrose Essential Original Blend Tea 160 teabags 500g - Fairtrade	£2.20	£2	9%
Waitrose Essential Unsalted Dairy Butter 250g - Made in Shropshire, with milk from British farms	£2.20	£2	9%
Waitrose Essential MSC certified Tuna chunks in water 112g drained weight - responsibly farmed and caught using pole and line method	£1.25	£1.15	8%

The upmarket chain is unlikely to become the cheapest UK supermarket as a result of the cuts.

However, it’ll certainly make it more competitive with rivals’ own-brand products.

Let’s take a look at the first three items listed in the table above and see how they compare with a random competitor.

The Waitrose ham now costs £1 for 80g, while Asda’s Just Essentials ham is 86p for 125g;
Mature cheddar is £1.50 for 160g, while Tesco’s own-brand costs £2.35 for 220g;
Finally, eight Waitrose own-brand sausages cost £2 compared to £1.60 at Sainsbury’s.

While three items hardly constitutes a thorough analysis, it would appear they are closer but not quite as cheap as its rivals.

More cuts to come

The good news for Waitrose regulars is that there are more price cuts to come.

According to The Grocer, these cuts are “the first of two to three tranches of cuts planned by Waitrose throughout the year”.

These reductions are likely to be on products outside of its Essentials range.