Tesco has “disrupted the price hierarchy” in supermarket own label following the recent launch of its ‘Farms’ range.

In a recent briefing note to clients entitled ‘Tesco The Disruptor: Now The Cheapest Supermarket For Own Label & Leading The Channel Shift’, analysts at Bernstein Research said the chain’s own label offer is now among the most competitive in the market and ahead of the likes of Asda, Morrisons, and challenging the discounters.

The report said: “Tesco is making the boldest actions and is now the cheapest supermarket for own label prices. Far from being threatened by the actions of Aldi and Asda, it is taking the fight to them with the launch of its Farms Brands.”

Bernstein added the launch was a “decisive move” by Tesco, giving it the opportunity for the first time to compete on price with Aldi across a wide range of own label products.

“Our taste tests, the merchandising and the provenance all point to a quality product. Tesco is no longer competing with the discounters with an inferior product. This is a material investment and shows Tesco to be the main aggressor in the market,” the report said.

After last week posting a second successive quarter of UK underlying sales growth, Tesco hailed the success of its seven new Farms fresh food brands which were aimed at attracting shoppers back from the discounters. The group said that two thirds of its customers have now bought products from the new ranges with customer satisfaction scores said to be “exceptionally high”.


Source: NamNews