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Tesco said on Monday that by cutting prices it had made the scheme redundant.

Tesco customers ‘will lose £107 a year’ on average after it ditches brand guarantee at tills



TESCO shoppers could lose up to £107 a year on average once the UK's biggest supermarket scraps its Brand Guarantee Scheme, according to new analysis.

The supermarket announced it is pulling the plug on its popular policy, which promises to price match the cost of items at Asda, Morrisons and Sainsbury’s when customers buy ten or more branded products.

Customers are then automatically refunded the difference - up to a maximum of £20 - at the till before they pay.

Tesco said it was scrapping the initiative as fewer than one in eight transactions results in a refund. The supermarket also claimed the "majority of customers" would prefer lower every day prices.

But a secret shopper from The Grocer found that Tesco issued cashback on 47 weeks out of 50 in the past 12 months.

The analysis revealed that a customer would save an average of £2.06 per week thanks to the price-matching scheme.

This means shoppers could lose out up to £107 a year after the scheme ends on July 16.

The Grocer, carries out a weekly mystery shopping basket survey checking the prices of 33 everyday items at the five major supermarket chains.