Sainsbury’s customers switching to own-brand products
Sainsbury’s customers are switching to own-brand products and cutting back on non-essential spending as prices rise more quickly, according to the supermarket’s boss.
Simon Roberts warned pressure on household budgets is set to increase over the rest of the year.
Mr Roberts said Sainsbury’s was “doing everything we can to keep prices low”.
Some customers are switching into economy own-label when food shopping, while Sainsbury’s is seeing customers pulling back some spending on general merchandise, Mr Roberts said, with larger big ticket items “more challenged”.
Sainsbury’s sales fell 4% in the 16 weeks to 25 June compared with last year, but that difference was mainly down to how lockdowns in 2021 had pushed up sales, he said.
Sales at Argos were also down, in part due to the squeeze on household budgets, chief financial officer Kevin O’Byrne said.
Announcing Sainsbury’s latest trading update, Mr 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.”
“The pressure on household budgets will only intensify over the remainder of the year and I am very clear that doing the right thing for our customers and colleagues will remain at the very top of our agenda,” he added.