Sainsbury’s to invest £500m to help squeezed shoppers

SAINSBURY’S has vowed to inject more than £500m in lower prices to help shoppers manage inflation as they become “increasingly concerned” about their finances.

The UK’S second largest supermarket said the investment will go towards essential items such as milk, eggs, meat, fruit and vegetables.

The commitment comes after a fifth of households said they were “struggling” to make ends meet last month amid the fastest rise in food bills since 2009.

Simon Roberts, chief executive of Sainsbury’s, said: “Customers are making choices about where they spend money based on their household finances, 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 has been passing on some price increases, but the company said these were smaller rises compared with its major rivals. Its investment covers past efforts to lower prices as well as future initiatives, until March next year.

Mr Roberts has a long-term plan focused on value as he seeks to change shoppers’ perception that Sainsbury’s is more expensive than some competitors. The chain has already committed to locking the price of more than 1,800 items for at least eight weeks and matching discounter Aldi on price on hundreds of products.

Mr Roberts added: “The cost of living is having a huge impact on our customers’ and colleagues’ lives and we understand that, right now, every penny counts.” Last week, rival Asda warned that households’ disposable income dropped by £40.38 each week in April,

‘The cost of living is having a huge impact on our customers and colleagues. Now, every penny counts’

the largest fall since its income tracker was launched in 2008.

It recently injected £90m in a new, low-cost range and vowed to cut and lock in the price of 100 everyday products until the end of the year. Asda’s shoppers have been buying less food as well as switching to own-brand products to save money.

German discounters Lidl and Aldi have recently attracted more shoppers than ever to their stores in a sign that consumers are switching supermarkets to keep a lid on costs.