Tesco drops 'Brand Guarantee' scheme

Tesco is scrapping its price matching guarantee on branded products because shoppers are shunning them for own-brand goods. 

The scheme, which gives shoppers instant refunds if their branded items cost more than at other supermarkets, will end on July 16, when Tesco will focus on "keeping everyday prices low" instead. 

It comes as Tesco has begun clearing branded products like Higgidy pies and Danepack bacon, while revamping it own-brand lines to make them appear more upmarket.  

The store has already ditched its "everyday value" basics range, replacing it with "The Hearty Food Company" to make items more appealing.

Back in 2012 the "everyday value" line replaced its "Tesco value" line after it admitted shoppers were too embarrassed to be seen with items baring the recognizable white and blue stripes in their trolleys. 

However the recent decline in popularity of branded items means only one in eight shoppers is now benefiting from the scheme, it said.

Under the scheme customers who buy 10 or more products are given an instant refund if the branded items in their basket or trolley are cheaper at Asda, Morrisons or Sainsbury's.

Tesco claimed it had cut the price of over 260 everyday products over the past month, with savings ranging between 10 per cent and 50 per cent. 

Alessandra Bellini, Tesco's chief customer officer, said: “Since Brand Guarantee launched in 2015, we have continued to invest in simpler, lower everyday prices. 

As a result, the scheme is far less relevant for our customers today, and so we are withdrawing it as we focus on offering customers even more straightforward value for money at the shelf edge.

“In recent weeks, we’ve already reduced the prices of over 260 popular products, including own brand and branded favourites, and we’ll continue to work hard to offer our customers great quality food at great prices.”