Tesco will invest £19m lowering its clothing prices and has begun by slashing prices on over 700 key clothing lines.

By slashing prices on over a third of its clothing offering, the grocer is aiming to attract budget conscious shoppers.

Tesco clothing chief executive Terry Green said: “With all the doom and gloom of the credit crunch we want to give our customers better value for money and more choice than ever before.”

The retailer, which revealed last week that clothing sales grew 5 per cent year on year over Christmas, has selected its “most wanted” products including workwear, high fashion items and products from kidswear to basics and essentials. It includes items from its F&F and Cherokee ranges.

A£5 men’s knitwear promotion, which ran between November 24 and 26 last year, resulted in a volume increase of 572 per cent.

Green added: "Customers can rest assured that low prices are here to stay and the garments are from the same suppliers and of the same quality our customers have come to expect – no compromises, just great fashion product at lower prices."

Green added that the grocer was able to slash prices thanks to the volumes it buys in and the partnerships it has with its suppliers.

"Purchasing high volumes from them means we can work together to pass cost savings on to our customers,” said Green.

He added: "But we also know that customers care about how their clothes are manufactured, which is why we work so hard to be a responsible retailer. Our factory audits are detailed and thorough, involving a combination of record checking and on-site interviews with workers."

Last week, Primark said it would investigate claims that one of its UK suppliers had employed illegal immigrants in sweatshop conditions.