Tesco aims to end slide with £200m price cuts
Tesco unveiled plans for £200m of price cuts as it said it would open 150 convenience stores a year under plans to halt sliding UK sales.
The supermarket giant pledged to end "frivolous" promotions and invest in long-term price cuts to lure customers back after losing out to the likes of discounters Aldi and Lidl in 2013 and over the crucial Christmas period.
In a strategy update to City analysts, chief executive Philip Clarke admitted Tesco "didn't change enough" in recent years, but said the group was ramping up turnaround efforts to slash spending on larger store expansion and focus efforts online and on its convenience store estate.
He said there was no need for a "new strategy, but to go faster for customers and faster to improve".
"Prices must get better. They must be more stable," he said.
"Frivolous promotions must end," he added.
The plans come as closest rival Asda is also launching a fight-back after seeing sales flatline, pledging to spend £200m on price cuts and £750m in store revamps and new openings this year.