In a move that could shake up the UK supermarket landscape, Sainsbury’s has announced a price-matching initiative aimed at directly competing with Aldi. The retailer will match the prices of up to 200 Aldi products in its smaller, convenience stores, a first for any supermarket of this format. This decision means that shoppers can now access competitive prices on essential items like milk, bread, butter, chicken, pasta, and vegetables without having to travel to larger supermarkets.
The move comes as consumers face rising grocery costs and are increasingly turning to discount supermarkets like Aldi for their shopping needs. Consumer behavior company Circana has reported that shoppers are currently paying an average of 10% more for the same items in convenience stores compared to traditional supermarkets. This disparity in pricing has long been a concern, as Which? has highlighted that shopping at convenience stores instead of supermarkets could add an extra £800 to a household’s annual food bill.
Sainsbury’s is hoping to attract budget-conscious shoppers with its price-matching scheme, which will be available across its network of over 1,400 Local stores, both in-store and online. The move will replace the supermarket’s Pocket Friendly Prices campaign, introduced last year during the Christmas rush.
Sainsbury’s CEO, Simon Roberts, emphasizes the importance of value and convenience, stating that the company has invested nearly £1 billion in value over the past four years. The new strategy, dubbed ‘Next Level Sainsbury’s,’ aims to provide customers with “outstanding value, unbeatable quality food and great service.”
However, it is worth noting that Sainsbury’s Nectar loyalty card scheme will not be applicable to convenience stores.
While Sainsbury’s is making a bold move, other supermarkets have faced scrutiny in the past for their attempts to match Aldi’s prices. A BBC Panorama investigation revealed that some Tesco price-matched products were not like-for-like with Aldi’s offerings. For example, Tesco’s chicken nuggets contained only 39% chicken compared to the 60% found in Aldi’s version.
Aldi has consistently held the title of the UK’s Cheapest Supermarket since July 2023 and has been named Which? Cheapest Supermarket of the Year for three consecutive years. In response to Sainsbury’s latest move, an Aldi spokesperson stated, ‘Our promise to customers is that they will make significant savings every time they shop with Aldi, which is why we’ve been named Which? Cheapest Supermarket of the Year for three years running.’
As the supermarket industry continues to grapple with rising inflation and changing consumer habits, Sainsbury’s price-matching initiative could be a game changer. It remains to be seen whether this move will successfully entice shoppers away from Aldi and other discount retailers. The coming months will be crucial in determining the long-term impact of this strategy on the UK supermarket landscape.
