Tesco has announced yet another bold move to stay afloat / preserve market share in the tough UK grocery market – management plans to price-match Aldi on hundreds of essential products. Improved price perception is the aim but profitability erosion is also a likely side-effect. While Tesco is better placed (enjoys 2x operating margin) vs close peers, this step may not be enough to plug the customer leakage completely. The competition will only intensify henceforth.
05 Mar 2020
Tesco tackling the discounters head-on
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Tesco tackling the discounters head-on
Tesco PLC (TSCO:LON) | 282 -3.7 (-0.5%) | Mkt Cap: 19,843m
- Published:
05 Mar 2020 -
Author:
Nishant Choudhary -
Pages:
3
Tesco has announced yet another bold move to stay afloat / preserve market share in the tough UK grocery market – management plans to price-match Aldi on hundreds of essential products. Improved price perception is the aim but profitability erosion is also a likely side-effect. While Tesco is better placed (enjoys 2x operating margin) vs close peers, this step may not be enough to plug the customer leakage completely. The competition will only intensify henceforth.