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The Markets
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Retail

Tesco to devote more space to yellow label clearance items

Shoppers are hunting low food prices due to the cost-of-living squeeze said the grocer

Tesco is to increase the amount of space in its stores allocated to 'reduced to clear' or yellow label items after a surge in customers looking for rock-bottom bargains.

Official data today showed that the rate of inflation in the UK has hit a 40-year high of 11.1%, with food prices and energy leading the way.

A YouGov survey commissioned by the grocer showed that 69% of shoppers now look out for products which have been marked down because they are close to their expiry date or are end-of-season or discontinued lines.

Around a third of 33% of customers are seeking these cut-price products more often, it added, with meat and ready meals the most popular items.

Tesco added that another 29% of shoppers surveyed said they would buy reduced items if they were better presented, hence the store revamp.

It added that a bigger ‘reduced to clear’ section would also help it cut food waste.

Last week market researcher Kantar reported food inflation hit 14.7% in October.

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