The great Tesco Christmas giveaway
Leading UK supermarket chain Tesco has today announced a sale whereby 1000 of the company's lines will be cut in price by up to 50% in the run-up to Christmas. This is easily the largest of the pre-Christmas sales to be announced although when you consider the number of lines which Tesco has in store the figure of 1000 is fairly minimal.
Competition on the high street has never been tougher and if a partial reduction of some leading lines can pull consumers into their establishment each and every retailer in the UK will be looking to do so. There is no confirmation as to the particular lines which will be cut but you can guarantee that many items will still be on sale at near full price.
There are concerns that this move will instigate something of a price war amongst the leading retailers such as Tesco, Sainsbury, Asda and Morrisons leaving many of the smaller operations to fight for a much reduced slice of the cake. Margins are under pressure across the board and finances are being stretched to the limit for many of the medium to smaller sized businesses on the high street. A price war is good for the consumer but possibly the last thing many companies need at this stage of the economic cycle.
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