UK superstore chain Tesco recently demonstrated their intention to move into the luxury food market by rolling out price cuts on their 'Tesco's Finest' range, to compete with the likes of Marks & Spencer and Waitrose. As part of a nationwide promotional campaign, Tesco is shaking off their 'value' image by cutting prices in time for Christmas, in order to hold on to their market share.
Tesco bosses have taken advantage of the fact that consumers are tentatively starting to opt for luxury food items again, after initially trading down due to fears over economic recession, a period which negatively affected luxury food stores like M&S and Waitrose. As these customers start to go back to luxury food items, Tesco's aggressive marketing drive is hoping to stop those customers going back to upmarket stores by getting in first. It seems the strategy is working too; city analysts have reported a total sales increase of 8.8% for Tesco.
As part of their expansion, Tesco are also placing great importance on opening new stores. This strategy will not only create thousands of new food jobs for UK workers, but will also provide the group with good momentum, as well as making sure their rivals have plenty of competition during the run-up to Christmas.
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