Tesco stops price-matching some Aldi products during cost of living crisis as boss gets £3m bonus
Tesco is reportedly pulling some of its own-label products out of its Aldi Price Match campaign to increase the cost. There have been at least 18 Tesco own-label products pulled from its campaign since the end of March.
These include things like Tesco chilled dips, matched at 79p on April 20. But this week they are out of the campaign and are selling for £1.20 while Aldi's remains the same price.
Meanwhile, Tesco CEO Ken Murphy took home £4.74 million last year - £3 million of which was a performance-related bonus. The overall take-home pay is more than 400 times the wage of the average worker at his supermarket, reported Grocery Gazette.
Tesco corned beef has risen from £1.11 to £1.25 since April, Tesco’s Stockwell & Co strawberry jam, which was Aldi matched at 28p has now selling for 31p. But in a sign of times, Aldi is also raising the price of some matched products before Tesco follows suit, reported The Grocer.
Pizza, cherry bakewells and naan breads have all risen in price at Aldi in recent weeks. For example, the Aldi Everyday Essentials Cheese & Tomato Pizza 114g went up from 49p on April 20 to 55p on May 5.
A Tesco spokesman said to The Grocer: "We know that now, more than ever, customers want great value when they do their food shop. That’s why we are committed to providing great value for our customers, whether it’s promising low everyday prices on 1,600 staples, price-matching 650 basics to Aldi prices, or offering exclusive deals and rewards through Clubcard prices.”
An Aldi spokesman said: “Aldi is the UK’s cheapest supermarket and will continue to offer the lowest grocery prices in Britain. The most recent Grocer 33 basket comparison found that Tesco was 16% more expensive than Aldi and our customers know that those differences add up to big savings every time they shop with us.
“While the prices of certain products will change from time to time, our customers will always pay less at Aldi than other supermarkets.”
The UK is undergoing a severe recession and there is a so-called cost of living crisis as a result. Inflation is rampant while wages have remained stagnant for most people.
Newcastle-based marketing, media and PR company N21 Group have been given a £1,500 payout to help them cope with the rising cost of living - plus a city break. The firm said the issue of rising costs were raised as an area of concern by staff, with bosses keen to help out.