Friday, November 22, 2024

Sainsbury’s to rival Aldi in small stores after price gap criticism

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But shoppers pay a premium for convenience.

According to a snapshot from Circana, based on an analysis of 29 everyday products, shoppers are currently paying an average of 10% more for the same item in convenience stores than main supermarkets.

Some everyday items were a lot higher. In September based on the average price per pack or unit:

  • Bread was 21% more expensive

  • Prepared rice packets cost 36% more

  • Frozen pizza was 26% more

  • Ketchup cost 14% more

Consumer group Which? has long campaigned on the issue and recently found that shopping regularly at a convenience store over the course of a year could add an extra ÂŁ800 on a grocery bill for a weekly basket of goods.

Mr Roy said while convenience stores were more expensive to run and customers should expect to pay more for greater levels of service and convenience, retailers could be doing more to reduce the gap on basic food staples that are bought on a regular basis.

“The challenge is for greater transparency on price in convenience stores, especially where loyalty and promotion prices are not the same as those offered in other stores,” argues Mr Roy.

Supermarkets came under intense scrutiny as inflation soared and some have responded by adding cheaper, own label products in their smaller stores.

Convenience is one of the few parts of retail growing well. As supermarkets continue to compete fiercely for customers, Sainsbury’s extension of Aldi price match could prompt its rivals to follow to suit.

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