Supermarket Sainsbury’s has become the first grocer to extend its Aldi price-match campaign to its 800 local convenience store outlets.
In a bold move by its boss to win back market share from the German discounter, Britain’s second-largest supermarket chain today (4) has added price matches on 200 daily staples — including milk, chicken, bread and vegetable oil — in its local convenience stores.
Simon Roberts, chief executive, told The Times that he had decided to roll out the campaign because customers had told him that they “really love the convenience of Sainsbury’s Local, but would really like to see value on the products we buy most often.
“What we’re seeing from customers is that they want to be sure they’re getting the best value.
“UK grocery is one of the most, if not the most competitive markets in the world,” Roberts said. “What we’ve seen is lots of new, smaller supermarkets grow in the UK, and so we have to be competitive on everyday products that customers buy, in order for them to be confident in our value.”
He added that matching with Aldi prices “gives customers real confidence”, particularly when shoppers’ budgets are squeezed.
The Aldi price-match scheme will replace Sainsbury’s “pocket friendly prices” campaign, which launched last year to help customers find cheaper items in its Local shops more easily.
Sainsbury’s is targeting between 20 and 25 new Local stores each year, as part of its ongoing expansion plan, which includes opening more larger-format supermarkets. It will open a new convenience shop at Edinburgh Airport in December, in a unit previously occupied by Marks & Spencer. It will be Sainsbury’s first airport store.
“Whether on the way to work, or travelling from a station, local stores play such an important role in people’s lives," Roberts said.
Waitrose is to open 100 new convenience shops over the next five years as part of a £1 billion investment, while Marks & Spencer unveiled plans to open ten new convenience stores this year and renew up to 50. Morrisons plans to open 400 more of its Morrisons Daily convenience stores, with a wider goal of hitting 2,000 smaller stores in 2025.
The Competition and Markets Authority (CMA) today (27) declared that people who are members of a loyalty scheme can almost always make a genuine saving on the usual price by buying loyalty priced products.
Having analysed around 50,000 grocery products on a loyalty price promotion, the CMA found very little evidence of supermarkets inflating their "usual" prices to make loyalty promotions seem like a better deal.
George Lusty, Interim Executive Director of Consumer Protection, said: "We know many people don’t trust loyalty card prices, which is why we did a deep dive to get to the bottom of whether supermarkets were treating shoppers fairly. After analysing tens of thousands of products, we found that almost all the loyalty prices reviewed offered genuine savings against the usual price – a fact we hope reassures shoppers throughout the UK.
"While these discounts are legitimate, our review has shown that loyalty prices aren’t always the cheapest option, so shopping around is still key. By checking a few shops, you can continue to stretch your hard-earned cash.
As part of the CMA’s work to help people facing cost of living pressures, it conducted a rigorous investigation of loyalty pricing. This sought to get to the bottom of a number of potential concerns, including whether loyalty prices can be trusted, how they compare to prices at other supermarkets and how accessible they are.
The CMA conducted a consumer survey to understand what shoppers specifically think about loyalty pricing, for example: do they trust it, do they think it’s fair, and does it change where people choose to shop. The CMA also examined supermarkets’ behaviour – including, importantly, their use of customers’ data.
The evidence shows that almost all products scrutinised – 92 per cent of around 50,000 items – offered a genuine saving against the ‘usual’ price in the same store. While loyalty prices are generally some of the cheapest available, this wasn’t always the case meaning it’s worth shopping around.
The survey also found that people can make an average saving of 17-25 per cent buying loyalty priced products at the 5 supermarkets examined: Tesco, Sainsbury’s, Waitrose, Co-op and Morrisons. 76 per cent of shoppers say loyalty pricing has not changed where they shop, but 24 per cent now compare prices more due to the introduction of loyalty pricing.
55 per cent of those surveyed think the price for non-members is inflated during loyalty price promotions while 43 per cent of those surveyed think it is unfair that loyalty scheme members pay lower prices for some products than those without a membership.
Another key finding of the survey was that people’s concerns about how their personal data is used is not stopping them from joining a loyalty scheme – only 7 per cent of those surveyed said they hadn’t signed up to a scheme due to personal data concerns. Some supermarkets could do more to make sure that certain shoppers – such as those without smart phones and the elderly – are able to join and make use of loyalty schemes
As part of its wide-ranging review, the CMA also looked at the way supermarkets collect and use people’s data when they sign up to a loyalty scheme. It did not see evidence of consumer law concerns in relation to this.
However, the CMA did find that there was room for improvement regarding people’s ability to access loyalty schemes.
Some supermarkets could do more to ensure people without smart phones or under 18s, for example, can access – and know how to access – loyalty prices. This could include introducing offline sign-up, in-store or via the telephone for example, and lowering the minimum age for joining a scheme.
Supermarket Tesco is planning to open 150 new convenience stores across the UK over the next three years as part of a major expansion, creating more than 2,000 jobs in local communities across the country.
The supermarket chain has not confirmed where it plans to open any of these new stores. The supermarket chain announced the plans for its Tesco Express sites last week as it celebrated the 30th anniversary of its convenience store brand. Tesco has over 4,000 supermarket stores overall across the UK.
The supermarket opened the doors of the first Express store in Barnes and Norbury, London in 1994. Most recently, the supermarket chain opened a new Express in Burnt Oak in northwest London. The new site opened close to where Tesco's first-ever site - founded by Jack Cohen - opened in 1929. The Burnt Oak Express store in North London will be the supermarket’s 2,882nd UK store.
Tesco managing director of UK stores Kevin Tindall said, “I’m delighted that we have come full circle and returned to the street where it all began, with Jack Cohen’s first store in Burnt Oak. Burnt Oak has a special place in Tesco history, and we’re proud to be serving its local community once again – alongside thousands more across the country.”
The supermarket opened the doors of the first Express store in Barnes and Norbury, London in 1994.
Similar to other supermarket chains, Tesco has increasingly prioritized its convenience store offerings over the past year. Most recently, the retailer unveiled significant price reductions on staples like bread, milk, and chicken, spanning 200 product lines in its Express stores. According to Tesco, these prices have been reduced by an average of 10 per cent.
Tesco CEO Ken Murphy said at the time, “Today’s round of price cuts on more than 200 lines in our Express stores underlines our commitment to offering great value to Tesco customers.
"Whether you are picking up coffee and milk for the office or a loaf of bread and a tin of soup on the way home, our Express stores offer both convenience and great value.”
Supermarket Asda has hired its former Chief Executive Allan Leighton as its new Chairman to support efforts to revive the business after a difficult few years.
Leighton, 71, will replace another retail veteran, Lord Stuart Rose, who has held the role since 2021. Lord Rose was recently tasked with kickstarting Asda’s turnaround strategy after co-owner Mohsin Issa stepped down from running the business in September. Reports said he was heavily involved in efforts to appoint Leighton and will leave the business once the new Chairman is settled into the role.
While Leighton will be Asda’s Chairman for the foreseeable future, the retailer is continuing its long-running search for a Chief Executive.
Leighton spent five years running Asda between 1996 and 2001, during which time he oversaw the company’s sale to Walmart in 1999. He subsequently went on to become President of Loblaw Companies, North America’s second-largest food retailer, and spent nine years as Chairman of the Co-op.
Leighton said, “Stuart has done an important job in helping to create a retailer with a presence in every format and I am delighted to be returning to the business which has always been a special place for me.
"The potential for Asda now is significant, and my focus will be to work with the leadership team to help make Asda special for our colleagues and millions of customers.”
Lord Rose added, “Asda will benefit enormously from Allan’s experience of leading the business, and on behalf of the Board I am pleased to welcome him back. I look forward to continuing to support Asda as a shareholder and customer over the coming years.”
Gary Lindsay, Managing Partner of TDR Capital, said, “We would like to thank Stuart for the role he has played over the past three years and for the work he has done to help position Asda for long-term success. Asda today has both a leading superstore estate and a strong position in every format, and Allan’s experience and understanding of Asda will stand us in good stead as he leads the business into the next stage of its development. We are looking forward to working with Allan to help Asda deliver on its potential.”
Leighton’s arrival comes at a turbulent time for the UK’s third-largest supermarket, which is scrambling to turn around its fortunes following a prolonged run of falling sales and market share losses since being acquired by TDR Capital and the Issa brothers in 2021.
Earlier this month, Lord Rose said Asda had “lost the plot”, highlighting inadequate store standards, poor product availability and prices not as sharp as they have been in the past. But he said the business was fixable, and after taking charge, he cut back on home working for administrative staff and scrapped around 475 head office roles.
However, with Asda saddled with huge levels of debt, analysts suggested that Leighton faces a harder task turning around Asda now than during the rescue mission he took on in the Nineties.
Tesco is slashing the price of more than 222 own-brand and branded products in its Express convenience stores.
Essentials including milk, bread, pasta and coffee are included in the lines which have been reduced in price by an average of more than 10 per cent at Tesco Express stores. The retail giant has made more than 2,800 price cuts across stores in recent months. With 2,048 of convenience stores at the end of the 2023-24 financial year, Tesco aims to benefit hundreds of thousands of customers from the cheaper deals.
The firm said the move comes in the wake of more than 2,800 price cuts made by the chain across its stores in recent months. From Wednesday, customers will pay £1.45 for a four-pint bottle of milk at their local Tesco Express store (down from £1.55) and a Tesco Toastie White Thick White Loaf is also 10p cheaper at 75p.
There are even bigger savings on Tesco Chicken Breast Portions (300g), which have dropped in price by 25p to just £2.25 and a 200g jar of Tesco Gold Instant Coffee now also costs 25p less at just £2.25. Among the branded products with price cuts are Warburtons White Sliced Sandwich Rolls, with the price of a six-pack cut by 10p to just £1.20 and Domestos Original Bleach 750ml, which is now just £1.19 in Express stores after an 11p price cut.
Tesco CEO Ken Murphy said, “Today’s round of price cuts on more than 200 lines in our Express stores underlines our commitment to offering great value to Tesco customers.
"Whether you are picking up coffee and milk for the office or a loaf of bread and a tin of soup on the way home, our Express stores offer both convenience and great value.”
This comes a week after One Stop, the convenience store chain owned by Tesco, has reported a surge in sales to nearly £1.3bn during its latest financial year. The Walsall-based company posted a revenue of £1.29bn for the 12 months to 24 February, 2024, an increase from the previous year's £1.17bn. Over the course of the year, the number of stores directly operated by One Stop increased from 712 to 733, while its franchised locations also grew from 291 to 317.
Chancellor Rachel Reeves's budget is expected to prove to be “a big burden for the retail industry to carry”, Asda chair Stuart Rose has said, warning that the “consequences” of the budget will lead to some price increases.
Rose said the increase in employers’ NICs and changes to tax thresholds would have “consequences” and meant it could not rule out some price increases.
“If you get presented with a bill unexpectedly for around £100m, even if you’re a business as big as us, that takes some digestion. So, we’re looking at the consequences of that, but you cannot rule out the fact there will be some inflation,” Lord Rose told the Guardian.
Rose added that the changes in last week’s budget were “a big burden for the retail industry to carry” and meant that Asda would “have to look hard at every piece of expenditure”, including the annual pay increase for staff, and may limit how many workers it hires.
“We’ve seen an increase in national minimum wage,” he added. “We want to attract good staff, but we have to look very, very hard to affordability.”
It comes a day after Asda released its gloomy numbers the slide in total revenues, excluding fuel, by 2.5 per cent to £5.3bn in the three months to the end of September, while like-for-like sales were 4.8 per cent lower than the same quarter in 2023.
Asda’s warning about the cost of budget measures comes only days after it announced hundreds of head office job cuts and a restructuring in an attempt to turn around the business.
The retailer said it would slash 475 management roles in Leeds and Leicestershire to “remove duplication and simplify structures” amid a “challenging” market. The remaining staff have also been told they will be required to spend at least three days a week in the office from January.
“We are a business that relies on teams working together. It’s not always as efficient with those teams working together in terms of online, in terms of Zoom calls," Rose said.
Asda has been without a chief executive since the co-owner Mohsin Issa stepped back from executive duties in September, leaving the retail veteran Rose in the lead role.
Rose, who had previously called on Issa to step back, said he was “embarrassed” by Asda’s performance.
“I’d like to see the business flying again, so I stick by what I said,” Rose said. “We’re in here now with our heads together, we’ve got a good management team.”