By aligning prices with competitors, particularly discount stores like Aldi, larger retailers like Tesco can retain customer loyalty and prevent loss of sales to cheaper alternatives. However, the economics also involve careful product differentiation—such as adjusting ingredient quality or quantities—so that retailers can lower costs while still appearing to match competitors. This allows them to protect profit margins despite offering seemingly equivalent products at the same price.

Price matching also increases consumer trust, driving foot traffic to the store, which may lead to higher overall spending beyond the price-matched products. The long-term goal is to balance competitive pricing with sustainable profit by optimizing costs and leveraging economies of scale.