Tesco today launched a series of initiatives to offer cheaper goods and services to its customers including a £1 grocery delivery slot.
The strategy means that Tesco will be about half as cheap on delivery as its next biggest rival Sainsbury's.
From out initial analysis, Tesco is now offering 21 hourly slots at £1 out of its 98 available weekly slots. That compares to the cheapest slot available at Sainsbury's of £2.99 which is currently available for 8 of its 94 weekly slots.
The next cheapest slot at Sainsbury's is £3.99 compared to £2 at Tesco.
Tesco said its £1 slots would replace the previous £3 slot. Meanwhile, it said Click & Collect grocery, where customers order online and pick up from one of 260 locations in the UK, will be free compared to at least £2 previously.
The delivery price cut came alongside a raft of cuts in the price of its groceries to better compete with the likes of Aldi and Lidl. Last month smaller rival Morrisons also said it would introduce an additional £1 billion of price cuts over three years to help reverse losses.
Morrisons has already introduced cheaper, more simply priced delivery charges at £1, £2 and £3 when it launched its online delivery business in January. Tesco's most expensive price is still £6 which it currently charges before 11am on a Saturday and Sunday morning.
Tesco also said that, from today, prices will be lower on more than 30 basic products including eggs, bacon, baked beans and butter.
The prices include a reduction from 32p to 13p for a 420g can of own-branded baked beans, a 250g pack of Tesco English slightly salted butter will be 49p cheaper at £1, a 210g pack of Tesco unsmoked bacon will fall by 39p to £1.50 and a pack of six Tesco salad tomatoes will cost 31p less at 69p.
Tesco UK marketing director David Wood said: 'Together with £1 home delivery or free Click & Collect for food shopping, our customers are going to make real savings.'
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