Sainsbury’s will funnel £50m into price cuts for customers in a move which looks set to reignite the supermarket price wars in the UK.
The supermarket chain said the move will see 60 core fresh produce, meat and dairy products cut in price by the end of the month.
It is the latest step in the retailer’s plan to “put food back at the heart of the business” and focus on improving value amid continued competition for customers from German discount rivals Aldi and Lidl.
It also comes after Sainsbury’s launched its Aldi Price Match scheme earlier this year to reduce the price of hundreds of items.
Sainsbury’s said the latest round of price cuts will land this week, covering everyday essentials including chicken, bacon, herbs and potatoes.
Around 43 items will be reduced on 7 July, with a raft of further reductions taking the total of 60 by the end of the month.
The retailer added that its current Aldi Price Match and Price Lock are “already making a significant difference and getting a good early response from customers”.
Sainsbury’s has seen strong sales over the past year as it remained open during coronavirus lockdowns.
Sales for the 12 months to March jumped by 7.8 per cent, although the business dropped to £261m loss for the year after it was impacted by £485m in Covid related costs.
Shares in Sainsbury’s were up 1.95 per cent to 277p today.