Sainsbury's is to scrap its Brand Match promotion later this month, shifting investment towards cutting prices on everyday essentials such as bread, cheese, and household cleaning products. The scheme, introduced in 2011, gave shoppers money-off vouchers if they could have bought branded goods cheaper at Asda.
The supermarket chain said changing shopping habits mean Brand Match now applies to less than a fifth of transactions, as customers increasingly buy little and often rather than doing a large weekly shop. To qualify for the scheme, shoppers needed at least 10 items in their basket, including one branded product.
The move is part of a broader strategy under chief executive Mike Coupe to invest in lower everyday prices rather than complex promotions. In November 2014, Sainsbury's pledged £150m towards this recovery plan. Earlier this year, it announced it would phase out most multi-buy deals by August in favour of simpler pricing.
Supermarket pricing tactics have faced scrutiny from the competition watchdog following a 'super-complaint' by consumer group Which? last April, which highlighted 'dodgy multi-buys, shrinking products and baffling sales offers'. Sainsbury's previously drew criticism in 2014 when it stopped matching prices with Tesco.
Other supermarkets are also reviewing price-matching schemes amid a price war driven by discounters Aldi and Lidl. Morrisons removed the price-matching element of its Match & More loyalty card in October, while Asda is reviewing its Price Guarantee scheme. Sainsbury's move may raise concerns about its competitive edge, though it noted that 16% of customer transactions are covered under Brand Match, with most comparable shops being the same as or cheaper than Asda.
