Sainsbury’s announces another £15m of price reductions

Sainsbury’s plans to make another £15million of price cuts on essential staples as millions of Britons continue to be impacted by the cost-of-living crisis.

Britain’s second-most popular supermarket by sales said it would lower prices on its own-brand items, as well as goods like spaghetti, jams and honey, from Tuesday. 

The FTSE 100 grocer’s ‘happier and healthier’ whole chicken breast fillets will also be price-matched with discount chain Aldi, while Freefrom pasta will cost the same for customers as regular pasta.

Sainsbury’s has already announced price reductions on hundreds of items across a wide range of categories this year, many of them as part of its recently-launched Nectar Prices loyalty scheme.

Other goods to have decreased in price in recent months include toilet paper, tuna, bread, butter, and dairy products like soft cheeses, yoghurts and cream.

Food and non-alcoholic drink inflation in the UK totalled 18.4 per cent for the 12 months ending May 2023, slightly below the previous month but far above historical levels and more than double the consumer prices inflation of 8.7 per cent.

Supermarkets are coming under pressure to reduce prices to help Britons struggling with soaring energy bills and a more expensive weekly shop.

Earlier this month, Morrisons and Marks & Spencer announced price cuts on dozens of items, such as minced beef, yoghurt, and chickpeas, while Asda instigated a price freeze on more than 500 products until August.

But the grocery sector has faced accusations of ‘profiteering’, something its has resolutely denied, often by citing their slim profit margins.

Chancellor Jeremy Hunt is to meet 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 ‘potential measures to ease the pressure on consumers,’ Mr Hunt has confirmed.

Prime Minister Rishi Sunak’s official spokesman told reporters on Monday that the meeting on Wednesday will see them discuss ‘what actions the regulators are taking, what more we could do working together, are there any potential barriers to them going further’.

The spokesperson acknowledged there is ‘no legal requirement’ for supermarkets to pass on savings but added: ‘There are rules around things like profiteering – I’m not suggesting that’s the case here.

‘Equally, I think we would, of course, want supermarkets and others to rightly pass on the savings they are making with the fall in global energy costs. I think that’s what the public would expect, and they will vote with their feet if that’s not the case.’

Sainsbury’s shares were 1.6 per cent higher at 261.2p on late Monday afternoon, meaning they have gained around 16 per cent since the beginning of the year.