Tesco becomes latest supermarket to overhaul price matching scheme.
From today, Tesco is dropping own-label goods from its price matching scheme and instead focusing on beating prices on branded items compared to rival supermarkets.
The move follows Morrisons decision to overhaul its Match & More loyalty scheme, which will see it scrap price matching altogether from next month.
Tesco says the change is being introduced after feedback suggested its existing price matching vouchers were ‘failing to meet customer’s needs’ and shoppers were missing out on millions of pounds of savings each year.
How Tesco’s Price Promise used to work
Tesco’s Price Promise compared the cost of branded or comparable own-brand goods against Asda, Sainsbury’s and Morrisons for in-store and online shoppers with at least 10 items in their basket.
If the total cost of the shop would have been cheaper elsewhere, Tesco provided a voucher for the difference up to £10, valid for 28 days.
How the new Tesco Brand Guarantee will work
Tesco’s new Brand Guarantee will now only compare the cost of branded grocery shopping against what it would have cost to purchase the same items at Asda, Morrisons and Sainsbury’s.
If the shop would have cost less at any of its rivals, shoppers will now automatically get the difference deducted off their bill.
To qualify for the Brand Guarantee shoppers must purchase a basket of a minimum of 10 different products with at least one comparable branded item.
The instant saving will apply to both in-store shopping and online orders and will include promotions on branded items at Tesco’s main competitors.
Why has Tesco changed its scheme?
Tesco says it’s made the change after direct feedback from shoppers revealed price match vouchers weren’t that effective at saving shoppers money, as many simply forgot to use the vouchers the next time they shopped.
Matt Davies, Tesco UK and Ireland CEO said: “Shoppers tell us price matching vouchers are a pain and don’t really help them. We all know it can be stressful and awkward when you have to rummage through your wallet to find a price match voucher.
“That’s why we’re ensuring that with Brand Guarantee customers will never lose out on their branded shop by getting money off their bill at the till.”
Supermarket price wars
Tesco, Sainsbury’s, Asda and Morrisons have been steadily losing customers to discounter stores like Aldi and Lidl. So the price of groceries has become a real battlefield with price matching a major weapon in the fight.
A recent loveMONEY poll revealed 35% of readers favoured price matching from a supermarket loyalty scheme followed by cashback (28%), discounts on regular shopping (25%) and points collection (12%).
But it looks like the big four supermarkets could be struggling to give shoppers what they want.
Tesco's changes take effect immediately. Price Promise vouchers will be accepted for 28 days as usual, but there won’t be any new vouchers issued.
From next month, Morrisons will no longer match the prices of branded and own label grocery shopping against Tesco, Sainsbury’s, Asda, Aldi and Lidl.
For now Sainsbury’s and Asda are the only stores that haven't made any changes to their current schemes.
Asda has a Price Guarantee which promises that if your shop of at least eight items is not 10% cheaper than Tesco, Sainsbury’s, Morrisons or Waitrose it will pay the difference.
Sainsbury’s Brand Match meanwhile promises to beat prices at Asda on branded items. If you could have paid less you will get a coupon for the difference to save money on your next shop.
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