Sainsbury's has introduced a new low priced range of fresh fruit and vegetables called Greengrocer's Value Selection.
Targeting budget conscious shoppers
The new range provides a cheaper alternative to standard fruit and vegetable lines, and should build Sainsbury's appeal with shoppers on tight budgets. The range is mainly made up of class two produce and appears to have replaced the equivalent Basics range in the SKUs where it has been introduced. To date the range is limited to popular lines such as apples, strawberries, onions and peppers.
In store there is no POS to highlight the new range, but it extends choice in key product groups. In apples for instance, the 80p price point for a 4 bag pack offers substantial savings other apple multi-packs, while the labelling has a higher quality and market style look to it than the more generic Basics product it replaces.
Part of wider defence against discounters
Sainsbury's move shares similarities with Tesco's launch of farm brands in fresh produce a year ago. The seven new produce focused 'brands' helped to deliver volume growth of 2.1% in H1 and were a key driver of Tesco's improved performance. Tesco aims to offer the lowest price products in the market and also benchmarks quality each week against five competitors, with farm brands providing a much more attractive entry level tier in Tesco's good, better, best architecture. Relaunching its entry level produce range has potential to deliver similar benefits for Sainsbury's and allow it to compete more effectively against the discounters, whose high quality low priced fresh produce has been a key driver of their recent success.
An important trial
Commenting on the introduction Sainsbury's said it was "constantly looking to innovate and bring new ranges and products to our customers. This trial consists of a limited number of products, offering highly competitive prices but with the quality they expect from Sainsbury's. We are watching the trial closely and look forward to our customers' feedback"
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