Sainsbury's has revealed a major pricing initiative, with prices lowered across a wide range of popular fresh and grocery items.
Targeted price reductions
The £150m price investment involves price cuts across 930 SKUs that span national brands and private label products. Sainsbury's estimates that a typical weekly family shop will be £4.95 cheaper as a result of the price cuts, a fall of 8% from £62.88 to £57.93. Example price reductions include by Sainsbury's penne, 500g (cut from 85p to 55p), a three pack of courgettes (from £1.30 to £1) and Dove Body Wash, 500ml (from £2 to £1.50).
Food inflation still a major issue for shoppers
Sainsbury's announcement comes a day after official figures from the ONS revealed a significant slowing in the rate of inflation. Prices of food and non-alcoholic beverages were 3.0% higher than a year earlier in February, down from a rise of 3.7% in January. Nonetheless our latest ShopperVista research shows that inflation remains a key concern for shoppers, with 76% of shoppers expecting food prices to rise over the next 12 months and 79% of them very or fairly concerned with living costs.
Market share under pressure
Coming just before Easter these price cuts could prove influential in attracting shoppers preparing for Easter family meals, and help to lift Sainsbury's market share. In recent Kantar GB data Sainsbury's has been the slowest growing of the Big Four retailers though its LFL sales growth has been buoyant, helped by an increasingly significant contribution from Argos.
Reinforcing "Live well for Less"
Commenting on the initiative Sainsbury's CEO, Mike Coupe, said: "We know our customers choose to shop at Sainsbury's for our fantastic quality and choice. These low prices now give customers more reasons to visit our stores. They can do their entire shop with us, confident that they are getting great low prices as well as Sainsbury's quality and choice. We are committed to making shopping with us a great experience and today's announcement is further demonstration of how we are investing to help our millions of customers live well for less."
IGD Sainsbury's Trade Briefing 2018
5 June, London
Hear from Mike Coupe, CEO and Paul Mills-Hicks, Commercial Director, along with their leadership team who will provide a business and commercial update. Book now before the Early Bird offer closes
Find out more »