Sainsbury’s to invest a further £15m in price cuts as grocers face pressure to help distressed consumers
- Spaghetti, jam and honey are among the staples that will see price cuts
- Sainsbury’s has already announced price cuts on hundreds of goods this year
- The cuts come amid double-digit food price inflation in the UK
Sainsbury’s plans to implement a further £15 million in price cuts on essential basics as millions of Britons continue to be affected by the cost of living crisis.
Britain’s second most popular supermarket by sales said it would cut prices on its own-brand goods from Tuesday, as well as goods such as spaghetti, jam and honey.
The FTSE 100 grocer’s ‘happier and healthier’ whole chicken fillets will also be price-matched with discount chain Aldi, while Freefrom pasta will cost the same as regular pasta for customers.
Discounts: Britain’s second most popular supermarket by sales said it would cut prices on own-brand items as well as goods such as spaghetti, jam and honey from Tuesday
Sainsbury’s has already announced price reductions on hundreds of items across a wide range of categories this year, many as part of its recently launched Nectar Prices loyalty programme.
Other goods that have fallen in price in recent months include toilet paper, tuna, bread, butter and dairy products such as soft cheeses, yogurt and cream.
Food and non-alcoholic drink inflation in the UK totaled 18.4 per cent for the 12 months ending May 2023, slightly below the previous month but well above historical levels and more than double the consumer price inflation rate of 8.7 per cent.
Supermarkets are under pressure to cut prices to help Britons struggling with skyrocketing utility bills and more expensive weekly groceries.
Earlier this month, Morrisons and Marks & Spencer announced price cuts on dozens of items, such as ground beef, yoghurt and chickpeas, while Asda placed a price freeze on more than 500 products until August.
But grocery companies have faced accusations of “profit-seeking,” something they have adamantly denied, often citing their slim profit margins.
Chancellor Jeremy Hunt is meeting with the Competition and Markets Authority (CMA) and the watchdogs for the energy, water and communications sectors on Wednesday to ask whether there is a profiteering problem in their industries and what they are doing about it.
Ministers are also talking to the food industry about “possible measures to relieve pressure on consumers,” Hunt confirms.
Prime Minister Rishi Sunak’s official spokesman told reporters on Monday that at Wednesday’s meeting they will discuss “what actions the regulators are taking, what else we could do by working together, are there any potential barriers for them to move forward.”
The spokesperson acknowledged there is ‘no legal obligation’ for supermarkets to pass on savings, but added: ‘There are rules around things like profit – I’m not suggesting that’s the case here.
“Similarly, I think we would naturally want supermarkets and others to pass on the savings they are making from the drop in global energy costs rightly. I think that’s what the public expects, and if not, they’ll vote with their feet.”
Sainsbury’s shares were up 2.45 percent at 263.5 pence late Monday afternoon, making them the strongest performer on the FTSE 100 Index.