Sainsbury's has launched a price match scheme against Aldi, intensifying the ongoing supermarket price war. The UK's second-largest supermarket will cut the cost of 250 essential items, including meat, fresh produce, and dairy, to match Aldi's prices. This move follows Tesco's Aldi price match, introduced in March 2020 and expanded to around 500 products in September.
Chief executive Simon Roberts said the initiative is part of his 'Food First' plan to put food back at the heart of the business. 'We are making great progress delivering our Food First plan and I'm determined that in these tough times, we do even more to help our customers save money,' he stated. The price match aims to assist shoppers balancing tight budgets amid rising living costs.
The price war comes as supermarkets face political pressure, with rumours that Chancellor Rishi Sunak may consider a levy on 'excess profits' made during the pandemic. However, supermarkets argue that while people are buying more food for home consumption, profit margins are squeezed—typically between 2-4%—due to higher costs from online shopping, including delivery and staffing.
Interestingly, the shift to online has benefited traditional supermarkets over Aldi, whose smaller online offering has hindered its ability to capitalise on booming home delivery demand. Kantar data for the 12 weeks to 24 January 2021 showed Aldi sales grew just 5.7%, compared to 12.2% growth across the UK grocery market overall.
In response, Aldi highlighted that Which? found Sainsbury's over 31% more expensive than Aldi. An Aldi spokesperson said, 'Shoppers know that the only place you can get Aldi prices is at Aldi.' Meanwhile, Lidl, which avoids price drop campaigns, was named cheapest supermarket by Which? in 2020.
