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Tesco offers online shoppers hundreds of pounds a year in savings

Published:  22 April, 2014

Tesco has ramped up the stakes in grocery online retailing by offering potentially hundreds of pounds a year in savings to customers looking to get their shopping delivered to their homes.

 Tesco has ramped up the stakes in grocery online retailing by offering potentially hundreds of pounds a year in savings to customers looking to get their shopping delivered to their homes.

As part of another round of price cuts on over 30 key grocery product lines (including eggs, butter, bacon, baked beans) Tesco has announced it is offering one-hour home delivery slots for £1 instead of £3. It is also now providing a free Click & Collect service, where customers order online and pick up from one of 260 locations in the UK, compared to the £2 it was charging.

Tesco claimed the move could save its online shoppers £252 a year with a further £111 a year saving for its Click & Collect customers.

The move has been seen by competitors and retail analysts alike as Tesco trying to get back on the front foot after another week of stinging headlines following a second year of falling profits and sales. Figures released last week show its pre-tax profits fell 6.9% to £3.1bn for the year to February 22 with like-for-like sales down 3% in the last three months.

Tesco's overall share of the market is said to be 28.6% in April, its lowest level in the last 10 years.

The cuts follow hot on the heels of the wide ranging cuts made by rival grocer, Morrisons, as it entered what it said would be a three-year price war as it looks to invest £1bn in revamping its fortunes.

Tesco shoppers will be able to enjoy savings of as much as 32p of a 420g can of own-label baked beans, down to 13p. Tesco unsmoked bacon will fall by 39p to £1.50 and a pack of six Tesco salad tomatoes will cost 31p less at 69p.

David Wood, Tesco's UK marketing director, said: "Together with £1 home delivery or free click-and-collect for food shopping, our customers are going to make real savings. By cutting the price of eggs, bacon, tomatoes, bread, butter and baked beans, a family of four who like a cooked breakfast once a week will save around £96 a year."

  • The cuts did not include any savings on alcoholic drinks.

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