Aldi was founded by brothers Karl and Theo Albrecht in 1946, and now has over 10,000 stores in 20 countries, with an estimated turnover of more than €50billion (£44billion). It launched its first store in the UK on April 5, 1990, and there are now 874 outlets across Britain, with plans for 1,200 by 2025, with the retailer snapping up eight percent of the UK grocery market in 2020. Tesco is well aware of the threat posed by discount supermarkets like Aldi and has spent the past 18 months investing in the price and quality of its own-brand goods as it looks to offer a clearer value proposition at various price points.
Broadcaster Fiona Phillips sent two families to both stores during Channel 5’s “Inside Tesco: Britain’s Biggest Supermarket” to see how their weekly shop would differ.
She said in 2019: “Tesco says it’s making sure its large stores provide the right range and customer experience and says they are enjoying positive growth.
“Tesco bosses really have to decide which is the right way forward for the store, is it still an upmarket, quality supermarket, or maybe it’s time to go back to its roots?
“Tesco’s first big roll of the dice has been to create Jack’s, named after the store’s founder – Jack Cohen – it’s a small chain of discount stores which keeps prices low by stocking a much-reduced range of goods – only 3,600 lines compared to 35,000 at Tesco.
“Price is key to the discount model, when it launched last year, but when it launched last year, some pointed out that Tesco’s own budget range could still be cheaper than Jack’s.
“Tesco’s says Jack’s offers customers outstanding value and it’s really pleased with its performance, with plans to open 10 to 15 stores in total.”
Ms Philips asked the families to go around the stores and purchase the items they would in an average weekly shop.
She added: “With price clearly a key issue for supermarkets, I’ve asked two families to do a test, they are going to compare the cost of their weekly shop at both Tesco and Aldi.
“This isn’t a scientific price match, this is a real family shop where they experience pester power and are tempted by special deals.
The initiative will include both branded and own-label goods such as Tesco whole cucumbers and Warburtons Toastie sliced white bread.
Price of products will be checked twice a week, with those included in the campaign marked out with a distinctive red ‘Aldi Price Match’ bubble on the shelf edge and called out online.
Tesco says the move will offer “Tesco products at Aldi prices for simple, great value”.
Tesco’s chief customer officer Alessandra Bellini adds: “Our customers tell us they want the most competitive prices on the things they buy regularly.
“This new campaign will help time-poor and budget-savvy customers get Tesco products at Aldi prices on products that matter to them.”
Published at Wed, 06 May 2020 13:48:00 +0000