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Tesco to stock more own-brand items in Express stores

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In this episode we speak to Matt Dalton, consumer sector leader at Forvis Mazars. Matt discussed the biggest challenges facing the retail sector, from cost pressures and wage increases to polarised property markets and geopolitical shocks, and the ways in which retailers can best navigate these. We also explore how short-term cost-cutting could undermine long-term resilience, and how retailers can best remain agile and adaptable in unforecastable times.

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Tesco has announced a “major overhaul” to the range of products stocked in its Express stores, in a move that will see more than 50 products replaced with cheaper alternatives.

Many of the replacement items will be from its own-brand range, with some items less than a third of the price of the branded products they are replacing.

Tesco said that across the more than 50 products included in the change, own-brand alternatives are, on average, over 40% cheaper than the products they replace.

The move comes in response to the supermarket’s internal shopping data, which shows that customers are “increasingly turning to own-brand products to get great value, without compromising on quality”. 

Among the own brand lines being introduced are Tesco penne pasta (85p) and Tesco smooth peanut butter (£1.65), both of which will cost half the price of the previous branded product stocked.

In addition, bags of Tesco frozen garden peas (£1.65) will be almost 40% cheaper than the branded product they are replacing, while Tesco basmati rice pouches (75p) will be 30% cheaper.

Some branded lines, including toothpaste, are being replaced by a cheaper branded alternative at less than a third of the price. 

The new products will be delivered to stores over the next few weeks, with the change-over set to be complete by the end of August.

Tesco Convenience managing director Sarah Lawler said: “We know customers are watching every penny at the moment, so we hope these helpful product swaps will bring down food bills for even more families. 

“Our Express stores offer unbeatable value on everything from essentials to fresh produce, making healthy food more accessible for the 2,000 communities that we serve across the UK. And while our convenience stores don’t have the shelf space to carry the full range of our larger shops, by swapping these products, we’ve been able to make way for even more of our great-value own brand ranges.”

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