Sainsbury’s spending £50m to make Christmas dinner cheaper

Sainsbury’s ramps up the supermarket price war ahead of Christmas with a £50m cost-cutting campaign.

The UK’s second largest grocer has pledged to cut the cost of a Christmas roast to £4 each – cheaper than last year – despite rampant inflation.

It will bring total spending on price cuts by Sainsbury’s in the two years to March to £550m as it struggles to turn the tide of customers towards German discounters Aldi and Lidl.

Traditional supermarkets are once again under attack from Aldi and Lidl, with households desperate to find ways to cut costs.

Companies such as Tesco, Sainsbury’s and Asda are battling to keep prices down even as it hits their bottom line as customers look for the best value.

Shoppers are already leaving the major supermarkets, with prices rising by an average of 14.7 percent across the industry.

And Morrisons lost its coveted spot in the so-called ‘big four’ in September, overtaken by Aldi as it drove up prices faster than rivals.

Lidl has promised to be the cheapest supermarket this Christmas, with a meal for seven people costing £23.

And Tesco is fighting for its share of the Christmas shopping, promising a meal for five for £25.

Aldi expects its ‘biggest Christmas ever’, with CEO Giles Hurley claiming the supermarket is attracting millions of extra customers.

Sainsbury’s said £15m of its £50m investment will go specifically to cutting the price of festive meals as it also battles to retain shoppers.

Boss Simon Roberts said: “It’s our job to do everything we can to help with the rising cost of living.”