Tesco, Sainsbury’s, ASDA? That is the question on so many consumers’ minds at the moment. Where will customers get the most out of their money and which shop offers the cheapest deals?
Competition for shoppers’ cash has become increasingly aggressive as economic uncertainty, wage freezes and high inflation have squeezed consumer income.
A couple of weeks ago we saw that following the announcement of slow growth from the UK’s largest supermarket chain Tesco, the company would launch an aggressive £500million ‘Price Drop’ campaign meaning 3,000 price cuts on its products, including milk, vegetables, fruit and bread.
Soon followed ASDA with a knee-jerk marketing campaign, pushing its continuous promise to be 10 per cent cheaper than any other supermarket, and now Sainsbury’s. Tomorrow we will see the launch of their ‘Brand Match’ campaign, a technology Sainsbury’s has invested in allowing customers to compare prices of their branded products in their baskets to the same products in Tesco and ASDA. From this Wednesday, Sainsbury’s will issue customers with coupons to the value of the difference between its branded goods and those of its rivals. This has been launched exactly two weeks after Tesco’s campaign.
“The launch of Brand Match across the UK represents a revolution in retail and is fantastic news for hard-pressed shoppers,” said Sainsbury’s commercial director Mike Coupe.
In saying all of this, it has been announced today that ‘cheaper’ supermarket, ALDI, has seen a growth of 25% share over the 12 weeks leading up to October, the complete opposite of Tesco, which is seeing slow growth. Morrisons is currently the best performing supermarket out of the ‘big four’.
It will be interesting to see which of these campaigns will really lure consumers into spending at each of the supermarkets and if we will see a bigger growth in the cheaper supermarkets such as ALDI, LIDL and Iceland.