Sainsbury\u2019s is investing a further \u00a350m into lowering prices over the next four months, as shoppers continue to turn to discount supermarkets amid the cost of living crisis.<\/p>\n
Over \u00a315m has been specifically allocated towards maintaining low prices on festive food, with the supermarket holding the price of its Christmas dinner at the same level as last year.<\/p>\n
The latest announcement follows a previous \u00a365m investment to tackle price inflation in September. By March 2023, Sainsbury\u2019s will have invested over \u00a3550m into dealing with the cost of living crisis, the most money it has ever spent across a two-year period on mitigating price rises and a 10% surplus on its original target.<\/p>\n
\u201cWe really understand that millions of households are having to make really tough decisions this Christmas and our job is to do everything we can to help with the rising costs of living,\u201d says CEO Simon Roberts.<\/p>\n
\u201cWe are accelerating our commitment to being the best value, investing a further \u00a350m in lowering prices and doing everything we can to fight inflation and help our customers enjoy celebrating this year.\u201d<\/p>\n
Data released by Kantar today (6 December) shows Sainsbury\u2019s has lost some market share as Aldi and Lidl continue to grow. The supermarket\u2019s share for the 12 weeks to 27 November was 15.2%, a drop from 15.4% over the same period in 2021. However, its sales did rise by 4.3%, as take-home grocery sales across the board increased by 5.9%.
\nAldi promises to maintain low prices despite profit slumpSimilarly, Tesco \u2013 which claims the largest share of the market \u2013 saw its market share decline from 27.7% to 27.2%.<\/p>\n
Meanwhile, Lidl achieved record market share of 7.4% for the 12 week period, with sales increasing 22% year on year (YoY). Aldi\u2019s sales grew by 24.4%, as it reached a 9.3% share.<\/p>\n
In September, Aldi displaced Morrisons as one of the \u2018Big Four\u2019 supermarkets with the largest UK market shares. Morrisons\u2019 market share has remained below Aldi\u2019s at 9%, representing a YoY decline of 1%. Despite overall growth in grocery sales, Morrisons\u2019 sales have declined by 4.7%.<\/p>\n
Competing on value<\/p>\n
With the data indicating consumers are turning towards better value offerings as their wallets are squeezed, Sainsbury\u2019s hasn\u2019t been the only supermarket to invest considerable sums in keeping prices low. In September, Co-op announced plans to invest \u00a337m in slashing the price of more than 100 of its own-brand grocery products into the new year.<\/p>\n
Price match initiatives have also been expanded, with Sainsbury\u2019s having pledged to focus on fresh products in its \u2018Aldi Price Match\u2019 range. Tesco has a similar Aldi Price Match initiative, and in October reported that the range was extremely popular, with 99% of large baskets containing at least one item from the range.Co-op to invest \u00a337m in lower prices following profit dip<\/p>\n
Sainsbury\u2019s is also freezing prices on household essentials through its \u2018Price Lock\u2019, including 20% more own-brand products. Own-brand products have been a focus for the supermarket in its bid to maintain share during the cost of living crisis.<\/p>\n
In Sainsbury\u2019s interim results presentation last month, CEO Roberts reported strong sales in the retailer\u2019s own-brand ranges, up 11% YoY in the 12 weeks to 17 September.<\/p>\n
He also cited \u201cthe great performance\u201d of Sainsbury\u2019s premium private-label Taste the Difference range, which had seen sales increase by 13% compared to the same period in 2019.<\/p>\n
Kantar\u2019s head of retail and consumer insight Fraser McKevitt says this is a trend being seen across the supermarkets.<\/p>\n
\u201cThe cheapest value own-label lines have soared by 46.3%, but people still want to find room for treats at this time of year and this is driving growth at the other end of the spectrum too. Premium own label sales are up by 6.1% to \u00a3461m in November,\u201d he says.<\/p>\n
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TITLE:<\/p>\n
Original: Sainsbury\u2019s to invest \u00a350m in lower prices as discounters gain market share<\/p>\n
Sainsbury\u2019s plans \u00a350m investment to cut prices of own brand products
\nSainsbury’s to Invest \u00a350 Million in Lowering Prices of Own Brand Products
\nSainsbury’s Plans \u00a350M Investment to Cut Prices of Own Brand Products in 2022
\nSainsbury’s will spend \u00a350 million to slash prices of its own brand products
\nSainsbury\u2019s plans to spend \u00a350 million to cut prices of its own brand products over the next year.<\/p>\n","protected":false},"excerpt":{"rendered":"
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