Shoppers are paying more for groceries at
Tesco than before the supermarket giant launched its biggest ever price-cutting
campaign, it has emerged.

A basket of 33 staple items from the chain now
costs £58.37 – up by £1.34 since the campaign began.

And despite threatening a price war against
its rivals, Tesco’s items were actually more expensive than those in Sainsbury’s
and Asda.

Deals: Tesco is now planning to simplify promotions and reduce the number of multi-buy promotions to cut prices across essential products. However, so far prices have increased T
Tesco is now planning to simplify promotions and
reduce the number of multi-buy promotions to cut prices across essential
products. However, so far prices have increased

It will come as an embarrassment for the
company, which announced its £500million campaign, the ‘Big Price Drop’, last
Monday.

Bosses claimed they would slash shopping bills
by simplifying promotions and reducing the number of multi-buy promotions in a
move to cut prices across 3,000 shopping-basket essentials.
They added that the price cuts would represent
a major shift in philosophy to charge ‘as little as we can, rather than as much
as we can get away with’.

But a price-tracking survey  by The Grocer
trade magazine last week found Tesco shoppers were actually paying more at the
checkout than before  the price promotion was launched.

Its ‘Grocer 33’ survey looks at 33 branded and
own-label staple grocery products, including cheese, bread, meat, beer and pasta
sauce.

It found £2.99 Nivea Visage Wipes cost £1.50
more than the previous week, a four pack of Birds Eye Chicken Pies jumped 69p to
£2.69, and own-label Parma ham slices were 63p dearer at £2.45.

And it noted Tesco was actually behind the
competition. The 33 items at Asda cost £4.67 less than at Tesco, while the same
shopping at Sainsbury’s is 79p cheaper than at Tesco.

The magazine said that while Tesco had slashed
the price of 3,000 items, ‘you would not know it’ from the results of its
pricing survey.

‘Tesco will not be happy,’ it added. It said
the fact that its basket cost £1.34 more than the previous week would ‘add
insult to injury’ as it was the ‘biggest price hike of all the
supermarkets’.

The Grocer said ‘the irony will go down
extremely well at Asda’, where, ‘in stark contrast to Tesco’, a basket cost
£1.49 less than the previous week.

Asda also had the highest number of
‘exclusively cheapest products’, with seven, the magazine
reported.

Last week in a snapshot survey of 11 staple
items by the Daily Mail, the Tesco shopping basket came in at a total of £19.03,
compared with £22.40 at Asda and £23.80 at Morrisons.

But it found Tesco still had some way to go to
match Lidl and Aldi. The Lidl basket was £17.60, while Aldi was the cheapest at
£14.30.

The Grocer survey comes as Tesco prepares to
announce what is expected to be its biggest quarterly fall in UK sales in 20
years as shoppers continue to cut spending.

Underlying UK sales excluding fuel and VAT are
forecast to have fallen by as much as 2 per cent in the last quarter, compared
with a fall of 0.1 per cent in the previous quarter.

Despite the fall in UK sales, Tesco’s thriving
global business means it is still expected to announce a first-half operating
profit increase of 8 per cent to about £1.8billion on
Wednesday

Read more: http://www.thisismoney.co.uk/money/article-2044575/The-Tesco-price-war-starts-shoppers-end-paying-more.html#ixzz1azdFZdmQ

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