Tesco (also owner of Discount Retail Chain Jack's) has demanded “offensive” purchasing price discounts from its suppliers in a move expected to spark a price war.
Britain’s market leading grocer has given its suppliers until Friday to accept discounts of up to 50%, which will be partly funded by scrapping promotions. Tesco has pledged to match the Discount Retail Chain Aldi prices on 500 products after gaining market share from the discounter for the first time in a decade during lockdown. Discount Retail Chains Aldi and rival Lidl are likely to cut prices further.
Tesco's tough attitude partly reflects the need to avoid its previous mistake, when reluctance to lower its prices was at the advantage of Aldi and Lidl.
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