Tesco is scrapping its Brand Guarantee scheme as it redirects investment into everyday low prices.

The supermarket giant launched the scheme back in 2015 as a key part of boss Dave Lewis’s turnaround plan.

The initiative offered shoppers purchasing 10 items or more an instant discount at the till, if their branded shop would have been cheaper at Sainsbury’s, Asda or Morrisons.

But Tesco said that, following heavy price investment, “fewer than one in eight” transactions now qualifies for a discount at the checkout.

It added that the “majority” of customers said they would instead prefer to see lower everyday prices at the shelf edge.

As a result, Tesco will end the Brand Guarantee initiative on July 16.

The grocer’s chief customer officer Alessandra Bellini said: “Since Brand Guarantee launched in 2015, we have continued to invest in simpler, lower everyday prices.

“As a result, the scheme is far less relevant for our customers today, and so we are withdrawing it as we focus on offering customers even more straightforward value for money at the shelf edge.”

In the past month alone, Tesco has slashed the prices of 260 products by between 10% and 50%.

It said it would invest in cutting the price of “dozens more” lines across the next two weeks.