Supermarket giant Tesco is reportedly considering adjusting its price promotions to suit the financial situation of people who live in the areas surrounding its stores.
According to an article in industry magazine The Grocer, the retailer will launch initiatives encouraging customers living in poorer districts to buy from its Tesco Value range, while those in more affluent areas will be tempted by discounts on its high-end Finest products.
Tesco has experienced intense competition in less well-off regions from budget retailers including Iceland, Aldi and Lidl, and its high-profile Big Price Drop campaign failed to match expectations. Nearly £5bn was wiped off the value of the firm after its fourth-quarter figures were released.
“This reflects a scientific approach to marketing and could help reverse disappointing sales after Tesco effectively took its eye off the ball before Christmas,” Hargreaves Lansdown analyst Richard Hunter told the Daily Telegraph.
Earlier in the week, rival Asda announced plans to invest in a range of new stores over the coming year, potentially creating as many as 5,000 jobs.
