Price cuts no quick cure for Tesco's ills

London

CHEAPER meat and vegetables should draw shoppers back into Tesco stores but it will take time for the new boss of Britain's biggest grocer to win back market share.

Customers seeking to save money in a sluggish economy have turned away from the market leader to discounters such as Aldi and Lidl, igniting a price war in British grocery shopping and contributing to a series of Tesco profit warnings.

Tesco still wants to be a mid-range retailer and not a discounter but former Tesco directors, retail experts and analysts say Dave Lewis must urgently put lower and simplified prices for staples at the centre of a new trading strategy.

He has over £1 billion (S$2.05 billion) to further cut the cost of goods such as milk, bread and carrots in the hope that shoppers will fill their baskets with more profitable products but i…