Sainsbury’s has announced it will match the price of up to 200 Aldi products in its smaller stores, aiming to attract more customers to its convenience outlets. While shopping locally is often convenient, consumers relying on these stores may find themselves paying significantly more.
Campaigners have criticized retailers for failing to narrow the price disparity with larger supermarkets, especially during the ongoing cost-of-living crisis. Recent research by the BBC indicates that a frozen pizza can be 26% more expensive in convenience stores compared to main supermarkets.
Sainsbury’s is the first major supermarket to extend its Aldi price match campaign to convenience stores. However, the company has not disclosed the costs associated with this new initiative. It’s important to note that its Nectar loyalty scheme will remain exclusive to supermarkets and will not be available in convenience locations.
Aldi is consistently recognized as the UK’s cheapest supermarket, according to consumer group Which?. Major competitors like Sainsbury’s, Tesco, Morrisons, and Asda have implemented price-matching schemes for everyday essentials in their larger stores. A recent investigation by BBC Panorama revealed that some Tesco products priced to match Aldi were not truly comparable. For instance, Tesco’s chicken nuggets contained only 39% chicken, whereas Aldi’s version contained 60%.
Despite a slowdown in Aldi’s growth due to easing cost pressures, there is an observable trend toward increased convenience shopping. As Ananda Roy from Circana states, “What we are now seeing is the growth of convenience.” Other retailers such as Waitrose, Asda, Morrisons, and M&S are also expanding their convenience store offerings.
However, shoppers pay a premium for this convenience. An analysis by Circana found that consumers are currently spending an average of 10% more for identical items in convenience stores compared to main supermarkets. Some items exhibit an even greater markup; for example:
Mr. Roy emphasized that while running convenience stores is inherently more expensive—justifying higher prices—there is room for improvement in narrowing the gap on basic food staples.
“The challenge is for greater transparency on price in convenience stores,” Mr. Roy argues. This need for transparency becomes crucial as supermarkets face scrutiny amid rising inflation and increasingly competitive market dynamics.
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