** Take a good look at the empty shelves this Christmas **

UK : Supermarket group Tesco forgoes £80m in price cuts
1st January 2005


In a major effort on price cut competition, TESCO, the supermarket group, yesterday announced yet another round of price cuts to the tune of £80 million.

Further, it has committed an average of 9 percent reduction in the cost of 500 products from next week.

During 2004, the company claims investment of over £219 million in bringing down prices - excluding yesterday’s announced price reduction.

This will heat the price cutting rivalry to become the cheapest supermarket chain in Britain, among Tesco and its arch rival Asda, says trade magazine The Grocer’s independent research last month.

Tesco website also displays comparative product prices against rivals Asda, Sainsbury’s and Morrisons on similar lines to drive their point on product pricing.