Consumers will be treated to Tesco’s most significant price reductions in 25 years, The Telegraph cites the supermarket chain’s Chief Executive as claiming.

The company is investing £500 million in ‘The Big Price Drop’, offering discounts on 3,000 products. One third of these products will be Tesco’s own brand.

Richard Brasher, Tesco’s UK Chief Executive emphasised that, rather than the store offering price reductions on non-essential items, consumers would be able to save money on regular purchases such as bread, milk, cheddar cheese, chicken and ham.

“Across the country families are telling us the same thing – their budgets are under real pressure,” he noted. “They want more help today to afford everyday essentials. We have listened carefully and for families facing hard times and looking for genuine savings, The Big Price Drop will cut prices on the products they need to buy the most.”

While price reductions on individual products will increase, the company will be limiting its multi-buy deals. In addition, its double Tesco Clubcard points offer – which has been running for two years – will be terminated, saving the business £350 million. However, Brasher added that Clubcard users would be able to get deals at Pizza Express and Strada using fewer points.

“I guarantee customers will be saving more, not less,” he stressed. “This is not a quick marketing campaign. We’ve been working on this for the last six months.”

However, Brasher also stated that he expects profit margins for the UK division of the chain to remain the same. “Suffice to say, this is planned. I'm confident it will have the impact on our performance that we expect,” he said.

‘The Big Price Drop’ commences on Monday 26 September.