(qlmbusinessnews.com Tues. 5th Nov, 2024) London, UK —
Cost-of-Living Crisis: Sainsbury’s to Match Aldi Prices Across Small Stores.
Sainsbury’s has announced plans to match the prices of up to 200 Aldi products in its convenience stores, in a bid to attract more shoppers amid fierce competition and mounting pressure to make groceries more affordable during the cost-of-living crisis.
While convenient, shopping at local stores often means higher costs. Recent analysis highlighted that consumers pay significantly more in convenience shops compared to main supermarkets, with a frozen pizza, for example, costing 26% more. Consumer groups have long urged major retailers to do more to narrow this pricing gap.
Sainsbury’s becomes the first major supermarket to extend its Aldi price match initiative to smaller stores. However, its Nectar loyalty scheme will remain limited to larger supermarkets. The supermarket giant has not disclosed the financial impact of this new pricing strategy.
Aldi, frequently rated the UK’s cheapest supermarket by Which?, has been a key competitor, forcing Tesco, Asda, Morrisons, and Sainsbury’s to introduce similar price-matching programmes for everyday essentials. Despite Aldi's rapid growth in recent years, it has seen a slowdown as shoppers find some relief from cost pressures.
Market analyst Ananda Roy from Circana commented on the shift, noting the increased focus on convenience retail. “Convenience is growing, but it comes at a price,” Roy said, pointing out that other supermarkets, such as Waitrose, Asda, Morrisons, and M&S, are also expanding their convenience store footprint.
Data from Circana shows consumers are paying around 10% more for everyday items in convenience stores. The cost of some basics can be even higher: prepared rice packets are 36% more expensive, bread costs 21% more, and ketchup is 14% pricier. Which? has warned that relying solely on convenience stores could add up to £800 annually to a family’s grocery bill.
Roy acknowledged that convenience stores have higher operating costs, justifying some premium pricing. However, he called for greater transparency on staple items. “Retailers could work to reduce the gap on essential food items bought frequently,” he added.
Supermarkets have faced increased scrutiny over food price inflation, prompting many to introduce budget-friendly, own-label products in smaller stores. With convenience retail one of the few sectors experiencing strong growth, Sainsbury’s price-matching move may lead to further initiatives from competitors.
This News Story is brought to you by QLM Business News, your Digital Media Channel
Visit QLM businessnews.com
For more business news stories also follow us on Facebook, X and Youtube.
To Help qlm business news bring you more new stories like this, please like, share and subscribe.
Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.
