Tesco’s popularity among shoppers is on the rise after strategic initiatives such as its Aldi Price Match promise ramped up its appeal, analysts have revealed.
Research from Swiss bank UBS indicates customers’ perception of Tesco’s prices, the near-record uptake of its Clubcard and its ‘net promoter score’ – the number of customers who would recommend the store – have all shot up since February.
The report suggests recent initiatives by outgoing chief Dave Lewis have given Tesco fresh traction ahead of the arrival of new boss Ken Murphy, who presents his maiden results this week after just days in the job.
Research from bank UBS indicates customers’ perception of Tesco’s prices is up from February
UBS said industry experts believed ‘Tesco is tactically doing the right thing by targeting Aldi, with the view that the price leader in the market is the latter and not Asda any more’.
It added that Tesco, Sainsbury’s, Asda and Morrisons are in a better strategic position since coronavirus broke out.
The report said: ‘We have seen significant changes in customer behaviour.
‘The increase in online [grocery] penetration in the UK market since the Covid-19 crisis – from around 7 per cent to 13 per cent – and the ongoing trip consolidation are in favour of the Big Four.’
UBS has a Buy rating on the shares with a £3.15 price target. The stock closed at £2.10 on Friday.