Sainsbury’s CEO pledges £500m to keep prices down

The UK’s second biggest supermarket revealed sales at established stores fell four per cent in the 16 weeks to 25 June, compared with the same period a year before.

An 11% drop in sales of general merchandise and a 10% drop in sales of clothing compared to a period last year when Sainsbury’s benefited most clothing and non-food stores being closed under pandemic lockdowns.

Grocery sales dropped 2.4% year-on-year, as sales were partly up against a period when most restaurants, bars and cafes were closed last year, were up nearly nine per cent on pre-pandemic levels.

Shoppers are switching to cheaper products and own-brand items amid the cost-of-living crisis. Sainsbury’s own-label products were up by more than five per cent in the quarter.

Roberts said: “We really understand how hard it is for millions of households right now and that’s why we are investing £500m and doing everything we can to keep our prices low, especially on the products customers buy most often.

“We’re working hard to reduce costs right across the business so that we can keep investing in these areas that customers care most about.”

The supermarket’s inflation is running behind the industry average of seven per cent, Roberts said. However, there was “a lot of pressure in the system” from rising costs of commodities, labour, fuel, fertiliser and from the war in Ukraine, so Sainsbury’s was having to “work very closely with suppliers” to deal with inflation.