Tesco refuses to pay Unilever's increased prices

Tesco refuses to pay Unilever's increased prices
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British supermarket chain Tesco and Unilever are in an intense pricing argument as Unilever decided to increase the price of a group of items because of rising costs, but Tesco refuses to pay.

Drop in British pound

Several items, like Marmite and Pot Noodles, are currently unavailable at Tesco because of the disagreement. The supermarket chain says the items are no longer in stock and that it hopes to remedy the situation as soon as possible. 

 

Unilever points towards higher costs as the main reason for the price hike, but also towards the weaker British pound. Ever since the Brexit, the pound's value dropped, which in turn has led to higher prices for items imported to the United Kingdom.

 

Tesco also fears competition from discounters like Aldi and Lidl, who may possibly decide not to charge their customers for the additional costs, which in turn may force other chains to choose between smaller margins or higher price differences.