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Sainsbury’s CEO: ‘Nothing trumps value’ as price war pressure builds
Sainsbury’s CEO Simon Roberts has acknowledged the intensifying competition in the supermarket sector following Asda’s announcement to slash prices, but remains confident in his retailer’s ability to stay ahead.
Sainsbury’s CEO Simon Roberts has acknowledged the intensifying competition in the supermarket sector following Asda’s announcement to slash prices, but remains confident in his retailer’s ability to stay ahead.
His comments come after Sainsbury’s shares dropped by 7.8%, losing £487m in value, following Asda’s commitment to reduce prices.
In an interview with the Times, Roberts acknowledged the growing pressure, stating: “Nothing trumps value for money. Customers make decisions every day based on the price on the shelf, and that’s never changed.”
Despite the price war threat, Roberts pointed to Sainsbury’s recent success with the “big weekly shop” trend, fuelled by workers returning to offices.
“People are back in the office much more, so people are short of time again… that’s one of the reasons why we’re seeing this resurgence in the big weekly trolley shop,” he said.
Under Roberts, Sainsbury’s has increased its market share from 14.9% to 15.7%, with the retailer expected to report a 7% rise in operating profits for the year.
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While rising costs, including higher national insurance and minimum wage impacts, continue to present challenges,
Roberts remains optimistic. He pointed to the retailer’s ongoing expansion plans, refurbishments, and its push to offer personalised deals through the Nectar app as crucial to maintaining its competitive edge.
However, the supermarket’s recent decision to scale back its Aldi price match campaign highlights the growing pressure on price competitiveness.
Following moves from Tesco and Asda, Sainsbury’s reduced the number of products covered by the scheme, trimming down from 681 in November to 606 in February.
The cuts included many own-label products in core categories, raising questions about the future of such price-match schemes across the industry.
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