Shoppers in Oxfordshire are bagging the bargains after supermarket giant Tesco launched a massive price war, writes KATHERINE MacALISTER.

The biggest shopping spree for six years was expected last night (MON) when Tesco wiped £60m off the cost of goods on their shelves. They have launched a battle for customers with Sainsbury's and Asda.

Price-cutter Tesco is planning to make reductions of up to 25 per cent at all of its 600 stores on a variety of products including tea, chips, razors and shampoos.

But Tesco was adopting cloak-and-dagger tactics as it struggled to keep the details of price-cutting involving more than 300 products from its rivals.

It is the latest bid by Tesco to test Asda's promise to match the price of any rival.

Tesco spokesman Russell Craig said: "We have slashed our prices because it's what our customers want. The prices will be permanently lowered across the board on both own brand and household name goods as part of Tesco's long-term investment plan.

"If other competitors follow suit that's up to them. "We think our customers will be very pleased with the impact this makes on their weekly budget."

A fortnight ago, Tesco, Asda, Sainsbury's and Safeway locked horns over the price of a loaf of bread. The cost of a loaf of white sliced bread plummeted to just 7p as all four decided to match their rivals.

Already Sainsbury's has announced that it will "probably" match Tesco's price cuts.

But Asda is playing down the latest price battle as a "damp squib".

An Asda spokesman said: "We believe it will be a very small proportion of their stock. It is a total damp squib.

"They will only be reducing stock down in line with our prices and we believe that we will still be about five per cent to ten per cent cheaper."

A Sainsbury's spokesman added: "We have already matched their prices.

"Since last September we have had 1,200 special offers in our stores every week as part of our 'Value to Shout About' campaign. "We also have a price guarantee on 300 everyday items and will refund the difference if these products can be bought cheaper at a nearby competitor's store," he added. "We are very competitive and monitor Tesco's 250 offers to make sure they are in line with ours. If there are discrepancies we will match them. "Independent research has shown that quality is an important factor for customers too, so we offer value without compromising on quality."

The price war comes just weeks before the Office of Fair Trading announces the results of its probe into the Big Four supermarkets, who are accused of overcharging Britain's shoppers, who spend £87bn on food alone.

Story date: Tuesday 23 February

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