UK supermarket giants to freeze VAT on a number of items

Britain’s leading grocer Tesco along with its rival groups such as Asda and J Sainsbury said they would absorb the increasing value added tax themselves rather than passing it to their customers.

VAT is returning from 15 per cent to its pre-recession level of 17.5 per cent from January 1, 2010. Last year, the Government had slashed VAT to support economy in wake of recession.

Tesco has plans to freeze VAT on a number of non-food items to drive sales.

Tesco to sell iphone from Monday

Britain's leading supermarket chain Tesco will start selling Apple's 3G and 3GS iPhone models from Monday in around 100 stores and online, in a move that is expected to launch price-war in the market.

The iPhones will be available on an annual contract for just £20 per month. Customers will have to pay £222 up front for the 8GB 3G handset and £320 for 16GB 3GS model.

Tesco said it had no intension to introduce business tariffs.

Tesco sees improvement in sales

Tesco, Britain’s supermarket giant, reported an increase in like-for-like sales of 2.8 per cent, representing an improvement in customer confidence.

Tesco said its like-for-like sales, excluding petrol, jumped 2.8 per cent during 13-week period ended November 28 as compared with 2.7 per cent in the last quarter.

Tesco’s total sales climbed 8.8 per cent during the same period.

Improvement in Performance expected to be reported by Tesco for Third Quarter

Tesco, UK's giant supermarket chain will be revealing its third-quarter earnings figures on Tuesday, and these are set to give investors a reason to smile. For the first time in almost 2 years, the firm would report a rise in market share growth for the quarter up-to November 12. The figures have been confirmed by TNS Worldpanel figures.

Experts believe that the chain is reaping benefits from its "Double Clubcard Points" promotion scheme, and is also tied with a fierce price battle with all of its rivals, just the festive season chimes in.

Tesco sends out loyalty vouchers early

UK's leading retailer Tesco Plc mailed out of £67 million of Clubcard vouchers to customers as a part of an effort to boost customer loyalty drive before Christmas.

It was the first time since the launch of the loyalty card scheme in 1995 that Tesco sent out clubcard vouchers, usually due in February, before Christmas.

Tesco’s recent move reflects the intensity of competition in the market. Tesco has already announced price cuts worth £250 million.

Co-operative enters Christmas price-war

The Manchester-based Co-operative Group has entered the price war by announcing price cuts worth £200 million in the run-up to Christmas.

Customers will be offered "triple divi" points - three times the normal cashback dividend on selected products.

The Co-operative Group’s "triple divi" scheme will give customers savings equivalent to 6p in a pound.