Waitrose is expanding its Brand Price Match, which promises prices on par with Tesco on branded goods.

Waitrose has matched prices on over 1,000 branded lines since September 2010. It has now extended the offer to match prices on 7,000 product, equivalent to a large Tesco supermarket.

Waitrose managing director Mark Price said: “I believe by extending Brand Price Match today - alongside essential Waitrose, increased promotions and free delivery for online orders - will give them even more confidence that they can do their entire weekly shop with us, with no sacrifice of quality, range or inspiration.”

Shore Capital analyst Clive Black said: “We see Waitrose’s price matching with Tesco on brands as a move that does not kick off a price war or anything like it. It does, however, perhaps narrow the exclusive territory that Sainsbury has operated within from a brand value message perspective, so perhaps eroding some Brand Match potency.”

Black said Waitrose’s offer of free online delivery on all purchases over £50 makes a “very strong value proposition” and is “a material challenge to Ocado”.

The news comes as the battle for grocery spend is heating up. The Times reported today that Tesco has launched an Ocado-style subscription system similar to Ocado’s delivery pass.

Tesco told suppliers yesterday that it was introducing a monthly £10 charge for unlimited deliveries. The grocer has been trialling the scheme in recent months, the paper reported.

Ocado’s delivery pass, introduced in 2010, charges customers £10.99 a month or £100 a year for free deliveries of orders greater than £40.

The etailer today launched a wowcher.co.uk deal offering six months free Ocado delivery, £50 of groceries and the Ocado Total Saving Pass for £49. It is also offering £20 off customers first shop with a voucher.