J Sainsbury PLC (LSE:SBRY) has pledged £500mln in price freezes and matching schemes to ward off cuts by its rivals and help its customers battle the effects of the cost-of-living crisis.
The supermarket chain said it plans to deliver that amount in savings to customers through its Price Lock scheme and price matching with Aldi through to March 2023.
Many food retailers use loss leaders, selling essential household items at a loss, to drive sales of other goods and invite customer loyalty and Sainsbury’s move comes after the chain unveiled its plan this year to double down on its food retail offering.
In particular, Sainsbury’s said it will invest more money in its Price Lock campaign, which freezes the prices of 1,800 essential items for eight weeks or more.
Consumer products covered by the price lock include milk, eggs, fruit, vegetables, meat and fish as well as household essentials.
The company said it will also invest in the Sainsbury’s Quality and Aldi Price Match schemes.
The supermarket claimed that the inflation of its goods is lower than many of its market peers, at a time when the war on Ukraine is propping up inflation of food and other household goods in the Consumer Price Index.
In April, Sainsbury's promised to pay all staff the government’s Living Wage.
Sainsbury’s chief executive Simon Roberts said: “Customers can be reassured that when they shop at Sainsbury’s they are getting fantastic value and quality, which means they do not need to go anywhere else to get low prices.”
Shares were up 0.75% at 232.82p this morning but are trading 16% lower than six months ago.