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Originally Posted by ntluser
Who knows? Maybe other stores wil retaliate by offering food at lower prices and pinch a slice of Tesco's food market.
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According to the book I'm reading at the moment, it says some supermarkets sell food at a loss, and prop up their profits with the nonfood side of business (and advertising 'donations' from suppliers, but that's another story) - infact Sainsburys accused Asda of making a 100% loss on their food sales, and their entire income is provided from non food.
The whole subject of Key Value Items and Loss leaders is quite interesting, especially since the tactics employed by the supemarkets in this country are illegal in others (for example France has banned loss leaders).
Off topic really, but quite interesing, I find.
