Tesco is putting the squeeze on suppliers to pass on cost savings as it aims to cut prices for customers faster than its rivals.
The supermarket met suppliers lastThursday and shared its ambition to lead the way on price cuts, according to The Sunday Times.
The grocer highlighted the 84% plummet in freight costs, the 50% drop in wholesale electricity prices, and the 22% fall in plastic PET packaging prices over the past year within its presentation to suppliers.
A spokeswoman for the grocer told the newspaper: “We’re working …with suppliers to mitigate the impact of inflation as much as we can, particularly as some commodity and input prices begin to fall. When we see opportunities to pass on savings to customers, we’ll take them.”
Tesco’s supplier push comes as supermarkets have been forced to defend themselves against profiteering accusations.
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Bosses of the major supermarket groups, including Tesco director Gordon Gafa, were grilled by MPs last month to explain why their prices were still rising.
Meanwhile, Asda boss Mohsin Issa is set to appear in front of MPs this week to give clarity around the supermarket’s fuel pricing strategy.
Issa has written to MPs ahead of the select committee hearing to say he expects food inflation to ease further during the summer growing season.
However, he warned that it will take three to nine months for falling prices to feed through to consumers.
