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Tesco ramps up own-brand offensive to claw back share from discounters

Tesco has introduced seven new own 'Farm' brands across its major categories in its latest effort to claw back market share from discounters Aldi and Lidl.

The grocer has been on an own-brand offensive since last year which saw it trial ‘Try before you buy’ at some of its stores for the first time. Simultaneously, it’s been reducing the number of branded goods on its shelves by a third and competing on price with those that remain through the ‘Brand Guarantee’ scheme.

This latest push has seen it introduce 76 new lines, split equally across fresh produce and meat and poultry.  It will see the long-running 'Everyday Value' branding gradually phased out across these product ranges. 

“Over the last 18 months we have been simplifying our ranges, launched 'Brand Guarantee' and improved customer service.  However, we know customers want the convenience of getting all their shopping in one place,” said a Tesco spokesperson.

“These seven new brands, which are exclusive to Tesco, address our customers’ needs for quality fresh food, at very competitive prices in a single shop.”

Tesco will hope the move convinces more shoppers to do a full shop at the retailer, rather than hunting bargains by shopping often at different places.

It’s a challenge shared by all of the big four grocers. Sainsbury’s boss Mike Coupe recently said that the work being done by all to lower the price gap with Aldi and Lidl (which now command a combined 10 per cent share of the grocery market) has meant that the so-called “discounters” are increasingly looking like conventional supermarkets.

"The biggest barrier for us to overcome is the price difference between the discounters and the major supermarkets, although that’s come down a lot in the last couple of years," he said at a recent Mumsnet conference.

Featured by The Drum