Sainsbury’s is expanding its Aldi price match scheme in a bid to retain customers as the cost of living crisis worsens.
With recent industry data suggesting that cash-strapped consumers are already starting to switch to the discounters to save money, Sainsbury’s announced yesterday that its top 20 highest volume items would now be price-matched to Aldi.
Other changes to the scheme, launched in February last year, will see 150 of its highest volume fresh items included in a total of 250 price-matched products. The supermarket stated that it was focusing on the key footfall drivers of meat and poultry. Over 60% more volume in these categories will be included in the scheme, with some prices dropping by a tenth.
Other key items such as onions, cauliflower, oven chips, and butter will also be included.
In total, more than 6% of Sainsbury’s total volume will now be price matched to Aldi.
Rhian Bartlett, Commercial Director for food, said: “With costs going up, we’re working hard to keep our prices low. Customers are watching every penny and we are making it easier for them to buy what they need in our stores.
“Clearer in-store signs and posters will help customers compare the lowest prices – because we know that really matters to people right now.”
Last month, Sainsbury’s announced it was investing £500m in keeping prices down to help customers during the surge in the cost of living.
Chief Executive Simon Roberts said at the time: “The cost of living is having a huge impact on our customers’ and colleagues’ lives and we understand that, right now, every penny counts. We are determined to stand side by side with our customers and we are relentlessly focused on driving savings that can be reinvested into keeping food prices low.”
Recent data from Kantar has shown Sainsbury’s losing market share on a sales value basis. However, Sainsbury’s says it is raising prices less than its major rivals and winning market share on a volume basis.
Tesco extended its Aldi price match campaign to 650 products in April. However, it has reportedly removed some items in recent weeks in order to increase prices as cost increases and supplier demands eat into margins.
NAM Implications:
- Tesco and now Sainsbury’s!
- Perhaps simpler for each to construct Aldi-aisles…
- …that replicate and match the entire Aldi offering.
- Simply matching Aldi best sellers…
- …will leave shoppers wondering why re missing items!
