Sainsbury’s commits to £500m price investment as customer concerns grow

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Sainsbury’s chief executive has committed the grocery giant to invest a further £500m in lowering prices as customer concern over the cost-of-living crisis increases.

Sainsbury's Aldi price match

Simon Roberts said the UK’s second largest grocer would continue to pump funds into offsetting rising costs over the rest of the year, as shoppers become “increasingly frustrated” about their personal finances.

Roberts said Sainsbury’s would invest a further £500m into price by March 2023, amid growing customer anxiety after food inflation hit 7% in April, according to the latest grocery market data from Kantar.

While Roberts said Sainsbury’s had been forced to increase prices on some key basket items such as milk, the grocer is investing to keep rises lower than its rivals.

“We have a really important relationship with our suppliers and will work with them when the cost of food production is going up and impacting upon farmers,” he told PA.

“Increases in price are at the front of customers’ minds because they are everywhere, so we are ensuring we limit those and, when we have to make increases, offer better value than the rest of the market.

“Customers are making choices about where they spend money based on their household finances right now so we have to make it easy for them to manage their budget in our shops.

“They are increasingly concerned about their spending and we want them to know we recognise that and are doing everything we can.”

Sainsbury’s investment will focus on key basket items such as milk, eggs, fruit, meat and vegetables. The retailer will also continue to focus on its Price Lock and Aldi Price Match promotions, which Roberts sees as key levers to pull in the looming price wars.

Roberts’ commitment comes after Asda found customer’s disposable disposable income fell to an average of £205 per week – the lowest figure since October 2018.

Asda co-owner Mohsin Issa said the slump in disposable income “highlights the stark reality facing millions of families in the UK right now with household incomes more squeezed than ever”.