In response to the ongoing cost-of-living crisis, Tesco is revamping its Express stores with cheaper own-brand alternatives.
- The initiative entails replacing over 50 everyday items with options from Tesco’s own brand, promising substantial savings.
- Research indicates a lack of budget grocery lines in vulnerable UK areas, driving this strategic change.
- By the end of August, the transition in Tesco Express stores is anticipated to accommodate these new, cost-effective products.
- Tesco aims to make healthy food more accessible to the 2,000 communities served by its Express stores.
In response to the financial strain faced by many, Tesco is executing a significant overhaul in its Express stores. The emphasis is on replacing 50 common products with cheaper alternatives predominantly from Tesco’s own-brand range. The goal is to offer these substitutes at an average of more than 40% less than the cost of the previous items, marking a strategic move to address consumer needs during the cost-of-living crisis.
Research undertaken by consumer watchdog Which? highlighted a notable gap in budget-friendly grocery lines in numerous vulnerable areas across the UK. Specifically, Which? investigated a selection of 35 stores from Morrisons Daily, Sainsbury’s Local, and Tesco Express, using a list of 29 affordable grocery items as a benchmark. The findings revealed that 30 of these locations failed to stock any of the listed items. In response to similar insights, Morrisons recently introduced entry-level products to its convenience stores, setting a precedent for others.
The transition in Tesco Express stores is set against this backdrop of research and competitive actions. The introduction of new items is expected to be complete by the end of August, providing an array of own-brand products such as Tesco penne pasta at 85p and Tesco smooth peanut butter priced at £1.65, offering savings of up to 50% compared to their branded counterparts. Furthermore, Tesco frozen garden peas will be available for £1.65, nearly 40% less than the branded options they replace.
Tesco’s Convenience Managing Director, Sarah Lawler, stated the urgency of this initiative. “We know customers are watching every penny at the moment, so we hope these helpful product swaps will bring down food bills for even more families,” she said. With an emphasis on value, Lawler detailed that the Express stores are designed to provide unbeatable value on essentials and fresh produce, enhancing access to nutritious food for over 2,000 communities across the UK.
Despite the spatial constraints of convenience stores compared to larger supermarket layouts, this strategy allows Tesco to expand its great-value own-brand ranges further. Such product swaps across the stores have been orchestrated to increase efficiency and product access, responding adeptly to the current economic climate.
Tesco’s move to incorporate more affordable own-brand products in Express stores underscores its commitment to supporting communities amid financial challenges.
