Budgens stores are now price matching Tesco on 1000 branded products in the roll-out of the second phase of its lower price campaign.

The price match - the first to be launched by a convenience chain - was launched in September last year and covered over 800 products across 300 lines, as well as offering lower prices on hundreds of other lines.

And with prices matched to Tesco’s prices online, many of the prices are actually lower than in Tesco’s convenience shops, Budgens research reveals.

The lower prices are part of a £13m investment by wholesaler Musgrave Retail Partners GB. Musgrave GB MD Donal Horgan said customer and consumer response since September had been “very, very positive”. “We’re beginning to see improved price perception scores coming through from customers we interviewed before and after September as well as spontaneous recall on the campaign,” he said. “These are the known-value items that matter most to consumers. This is a long-term campaign to offer real value.”

The average footfall to stores had increased, with customers also increasing basket size, Horgan added. And he had “no doubt” the price match helped Musgrave to recruit new retailers to the Budgens fascia. “We are far and away the most competitive convenience brand for consumers in terms of pricing.”

Vince Maloney, owner of Budgens Ascot, said his like-for-likes were up despite the price deflation the campaign had caused. “We’re getting very good feedback from customers who are saying we’re now cheaper than Tesco Express.”

Further initiatives will see Musgrave launch a new own-label range in April. And it has been running trials to improve its fish, fresh and bakery offers, which are at various stages of rollout.

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