Tesco aims to keep its prices lower than all the other national superstores. Price, though, is not the whole story, because value for money at Tesco also includes the quality of the products we sell, the personal service of our staff and the pleasant surroundings in our stores.
As part of the New Deal pricing initiative, lower prices were introduced during the year on a further 100 own-label and branded products alongside the existing Value lines - a move which has helped to close the price gap between Tesco and the limited-range discount food retailers. Tesco own-label products aim to be at least as good as, if not better than, branded products. The range is constantly under review, and caters for all customers, whether they use premium goods, basic lines or both. The Tesco Value lines, with their distinctive packaging, offer customers the trusted quality of the Tesco name at easily affordable prices.
Customer choice and value for money are being extended in new product areas such as the home entertainment departments which were trading in 80 stores at the end of the year. These offer popular ranges of compact discs, videos, books and stationery.