Tesco re-focuses on poor - and posh

Following its Christmas sales trashing, Tesco is overhauling its store offering. Poorer, more hard-up areas will see much more emphasis on 'value', cheaper products while posher areas will have more hoity-toity, upmarket fare on its shelves.

To some degree, Tesco already follows this approach - but it will be more hard-nosed in future. Enough to bring you back from Morrisons/Asda - or Lidl/Aldi?


Big price flop

"Tesco has begun talks with suppliers aimed at launching price promotions in less well-off areas where it is facing competition from the likes of Aldi and Lidl," reports The Grocer. "It has a list of about 100 stores where it is going to launch special deals at discount prices," The Grocer reported one supplier as saying.

Tesco needs to make changes fast. The company saw its share price collapse by almost 16% in one day following its grim Xmas sales results - £5bn was effectively erased from the company's shares. But many once-loyal Tesco shoppers have been less than impressed by the company's response to surging inflation - its so-called Big Price Drop, which saw the retailer ending its Double Points promotion incentive.

The move effectively saved the company hundreds of millions. The company was also accused of raising prices for a few days before the Big Price Drop in order to claim some savings last year. How's this for a price drop? A Tesco 750g Fruit and Nut Museli went from £1.28 on 16 August last year to £1.89 on 23 August, the Mail reported, before 'dropping' to £1.75 on 26 September.

So, will making certain every-day goods in less well-off areas entice you back to Tesco? Or will you stick with Morrisons/Asda or Lidl/Aldi. Perhaps the damage has been done? Let us know.

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Tesco re-focuses on poor - and posh

This takes time, but once you know the cost of a phone call, putting the dryer on, or a bag of potatoes, it enables you to judge far better how much you can afford to consume.

Once you know the base price, you are in a position to keep your eyes open for a better offer. If you see a discount you can judge for yourself whether it actually constitutes a bargain. For bigger things like utilities it enables you to do a proper price comparison and see if you can cut your bills.

Don't just assume that the premium range is better, try the every-day brand, or even the basic version and see if you spot the difference. Likewise, consider trading down your supermarket from one of the big players to local markets or discounters like Aldi.

If you plan what you buy to match what you actually cook and eat then not only will you be able to budget far more effectively, but you'll also waste much less and find your money goes further without you having to try.

If you can't think of a way to get your meat for less, consider a vegetarian day once a week. If you can't find petrol any cheaper, then work on making your driving as efficient as possible. The more you can think of clever alternatives the less you will have to make painful cuts to make ends meet.

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