UK consumers are more concerned about food prices today than they have been for the last 20 years according to new research by Tesco – Britain’s leading supermarket serving more than 20 million shoppers a week.

Not since the late 1980s have prices featured so highly on shoppers’ list of concerns, Tesco’s latest review of customer trends shows.

But Tesco – which has already taken £620m off shopping bills since March - today delivered some good news for these hard-pressed shoppers as Britain’s favourite retailer also became Britain’s biggest discounter in a move which could save consumers almost £24 per week on a typical basket of shopping.

Tesco Commercial Director, Richard Brasher, said: ‘We want to help customers have it all in an uncertain world – an unbeatable range of products at prices to suit every budget combined with helpful staff, full ranges, Clubcard points and convenience.’

 Tesco today launches its biggest package of money-saving measures since it introduced the iconic Value range 15 years ago.

•         There will be a range of 350 new products – from Packers Best tea bags (£1.69 for 160) and Oatland Oaties biscuits (45p for 300g) to All About Shine Pro-Vitamin shampoo (79p for 300ml) and Daisy Washing Up Liquid (59p for 500ml) under the Discount Brands at Tesco label

•         Prices will be cut on hundreds of  existing Tesco and branded products, from Classic Coffee (60p from 66p for 100g) and Silver Spoon sugar (79p from 84p for 1kg) to Market Value Carrots (48p from 58p for 1kg)

•         Prices will be lowered to give unbeatable value on a range of home basics, such as a £3.39 iron and 500 sheets of plain printer paper at £1.73

•         Great Value Special Buys – on hundreds of non-food products from stationery and household essentials, including 12 AA batteries for £1, a torch twin pack at £3 and a paint roller set for £1.

And with Tesco’s latest customer research showing convenience, choice and service ranking as high as they ever have done, the great news for shoppers is that they can now enjoy Discount prices without giving up the Tesco benefits they love.

The key ingredients shoppers say they do not want to lose are:
• Clubcard discounts
• Choice and availability of range – whether that is Value prices or Finest treats
• Unbeatable value on laptops or brilliant winter knitwear offers
• Customer service and convenience – from easy parking to plenty of tills

Richard Brasher added: As customers tighten their belts in hard times, they tend to shop around for the best prices. Our research shows just how keenly they are feeling the need to watch their budgets.

‘We already offer incredibly low prices and have our Value range for basics. From today we will offer our customers an incredible range of low-cost brands – from Market Value apples and Trattoria pasta sauces to Daisy washing powder and Pro-Vitamin shampoo. This is discount shopping with all the added quality and service customers want and have come to expect from Tesco.’
The price cuts represent a fresh investment from Tesco in lowering prices by more than £100m.

The new ranges will complement existing brands – still popular with Tesco’s 20-plus million UK shoppers – and will mean Tesco is the only supermarket to offer every customer a product to match their budget without compromising on choice or quality. From Value to Finest and household brands, Tesco offers something for every shopper.

Tesco has increased the range of low cost fresh fruit, vegetables and meat – as well as lowering prices on non-food lines. From chicken portions to energy saving light bulbs, Tesco is helping customers with everyday essentials and household necessities.

Every product has been tested to meet customers’ standards and many are half the price of leading brands.

Examples of new brands are:

Product Our Price Branded Option (brand and price)
Country Barn Cornflakes 500g 75p Kelloggs Cornflakes 500g - £1.69
Country Store Aberdeen Angus Quarter-Pounder Beefburgers x 4 £1.99 Aunt Bessie’s 6 Quarterpound burgers: £2.99
Oak Lane Ketchup 730g 59p Heinz Tomato Ketchup 700g - £1.91
Packers Best tea bags 160 £1.69 PG Tips 160 - £3.18
Curry Leaf Tikka  sauce 500g 65p Pataks Korma Sauce 540g  - £1.49
Trattoria Verdi Penne Pasta 1kg £1.09 Napolina Penne Pasta 1kg £2.59
Daisy Washing Up Liquid 500ml 59p Fairy Washing Up Liquid 500ml - 98p
All About Shine Pro-Vitamin Shampoo 300ml 79p Pantene 400ml - £2.97
Spring Force Soft Toilet Tissue x9 £1.99 Andrex x 9  - £4.73
Creamfields Mature Cheddar (400g) £2.55 Cathedral City Mature Cheddar (400g) £3.86
Dermacare Q10 Day Moisturiser £1.79 Olay Day Moisturiser 100ml £9.97 (Half price to £4.98 until 7/10/08)

Examples of price cuts are:

Product Old Price New Price
Silver Spoon Sugar 84p 79p
Tesco Fajita Kit £1.74 £1.67
Tesco Soft-Scoop Vanilla Ice Cream 2L £1.15 £1.09
Tesco Pure Vegetable Oil 1L £1.19 £1.15
Tesco Classic Coffee 100g 66p 60p
Baby Essential Economy Maxi Nappies (56) £6.29 £5.29
Tesco Rice Snaps (440g)  £1.11 89p
Tesco Malt Wheats (750g) £1.34 99p

Examples of home basics offers and Great Value Special Buys are:

Value Double Duvet and 2 Pillows £10
Value Double Duvet Cover, Sheet and Pillowcases £8
HP Printer £19.97
500 sheets value Paper £1.73
Blank Ink Refill £4.67
Colour Ink Refill £7.90
Value Iron £3.39
Value Energy Saving Light Bulb 50p
Tesco Retractable Ball Pens 20 pk £1
Tesco 22 pcs screwdriver set £3
Tesco 75 felt tip tub £1
Tesco Value Greeting Cards x 10 £1

Tesco’s new discounter range spans ten categories: meat; dairy; produce; grocery; bakery; frozen; convenience; beers, wines & spirits; household and health & beauty. The range will initially be displayed in one prominent aisle so that customers can easily identify products, which will then be sold next to similar lines throughout the store. Tesco Extras will stock the entire range, while Superstores, Metros and Express stores will stock a smaller number of lines.