Tesco in the UK has launched a new campaign targeting German discounter, Aldi, with its “Aldi Price Match” campaign. Tesco states that “Our Aldi Price Match means we’ve matched the prices on hundreds of Tesco and branded products against prices in Aldi. Look out for the ‘Aldi Price Match’ in-store or fill your basket online.” The retailer adds, “We only match against comparable products at Aldi. We check prices in Aldi stores and/or online twice weekly. The stores we check are located in England, Wales and Scotland. Aldi do not have stores in Northern Ireland.” Tesco says it won’t match against any promotional prices in Aldi stores and/or online. The Price Match campaign now includes 500 branded and own label products.

UK trade magazine, The Grocer, is also reporting that Tesco has now told suppliers they must drop their prices as negotiations ahead of an all-out price war with Aldi ramped up this week. The Grocer understands suppliers have been given a cut-off of 10 July to respond to its call for a switch to everyday low pricing (EDLP), which will also see promotions cancelled unless they come under its Clubcard loyalty scheme. 

Tesco has already kicked off a major range review to underpin its shift towards everyday low pricing, the Tesco boss also sought to reassure brands the move would not negatively impact innovation. 

Tesco previously revealed today its shift to EDLP had already seen promotional participation reduced from 28% to 14%, the Grocer reports.

CEO Dave Lewis has been quoted as saying, “Tesco was determined to leverage its buying power to change the promotional dynamic. What we are suggesting should champion good innovation and that real innovation should stand tall in a market that’s simplifying. There’s no intention of culling brands. Brands are very important to us,” he added in an interview with the Grocer.