Supermarket chain Sainsbury’s has called a halt to its Brand Match pricing pledge, which sees it refund the difference to customers purchasing branded goods on sale at a lower price in Asda, as it seeks to focus savings on its Basics range.
The move to focus on the lower end of the market comes amidst intense competition from discount retailers Aldi and Lidl, which have been steadily clawing market share from Britain’s big four supermarkets; Tesco, Asda, Sainsbury’s and Morrison’s.
It also follows a marked shift in shopping behaviour, with people visiting supermarkets more often but purchasing less rather than loading the car up once a week. This means that fewer and fewer customers would qualify for the Brand Match scheme by purchasing 10 or more items.
The back to basics approach will also help to create a more transparent pricing structure, as it seeks to streamline complex tiers of promotions and deals in favour of straightforward low prices.
In a similar vein Sainsbury’s has already abandoned multi-buy deals, citing the storage and waste problems such deals exacerbate.