In a bid to remain competitive and address the growing concerns surrounding the country’s cost-of-living crisis, Sainsbury’s (LSE: SBRY) announced on Monday its decision to invest £15 million in reducing prices on essential items.
The supermarket giant aims to keep cost-conscious shoppers onside amidst persistently high food inflation, which reached a staggering 17% in May, as reported by industry data.
Despite the ambitious pledge made by Prime Minister Rishi Sunak to halve inflation this year, the efforts are being hindered by the significant rise in food prices. As a response, major UK supermarkets have been actively investing in price cuts to assist consumers and plan to pass on the resulting savings once input costs begin to decrease.
Sainsbury’s has promptly initiated its price reduction strategy, slashing prices on various products, including chicken breasts, pasta, rice, honey, and jam. This move follows recent similar actions taken by other leading retailers such as Morrisons, Asda, and Marks & Spencer.
Rhian Bartlett, Sainsbury’s food commercial director, expressed confidence in the impact of these recent price cuts on consumer sentiment. In a statement, Bartlett said, “These latest price cuts will help reassure customers that we will continue to pass on savings as soon as we see the wholesale price of food fall.”
