Report • 28.10.2015

Comparing prices directly at the checkout

Tesco starts “Brand Guarantee” to ensure its customers are paying the best price

The possible price difference to the preices of the competitors is subtracted from the receipt immediately.

Source: Tesco PLC

As the first supermarket chain in the UK Tesco has now introduced a best price guarantee. The prices of products in the customer’s shopping cart are compared with those of the other major chains Asda, Morrisons and Sainsbury's directly at the cash counter. The possible price difference is then subtracted from the receipt immediately.

With this new scheme Tesco aims to become more customer-friendly by sparing the supermarket customers the lengthy comparison of various receipts. The new model is employed in all major stores and the online shop of Tesco and also encompasses specific special offers of the competitors.

Matt Davies, CEO of Tesco in the UK and Ireland, aims to position his company as more customer-friendly with the new sheme.

Source: Tesco PLC

With starting “Brand Guarantee”, Tesco is responding to recent research by YouGov, according to which more than a third of the British supermarket customers has never been made use of a price guarantee voucher. And only 20 percent of customers have used such a voucher in an online shop. The untapped saving potential for British customers should amount to several hundred million pounds per year.

Matt Davies, CEO of Tesco in the UK and Ireland, said: "Shoppers tell us price matching vouchers are a pain and don’t really help them. We all know it can be stressful and awkward when you have to rummage through your wallet to find a price match voucher. That’s why we’re ensuring that with Brand Guarantee customers will never lose out on their branded shop by getting money off their bill at the till.We’re working hard to make the shopping trip that little bit easier for customers, with simple, affordable prices you can trust. Brand Guarantee is one more way we are taking the hassle out of a trip to the supermarket or an online shop.” The initiative has already been trialled in Northern Ireland over the last few weeks, with positive feedback from both colleagues and customers.

Author: Daniel Stöter, iXtenso.com

channels: customer satisfaction, customer relationship management, loyalty cards, pricing management, price optimization, pricing