Supermarket claims deals will be replaced with lower regular prices
Sainsbury’s says it is scrapping buy-one-get-one-free offers and other multibuy promotions as they no longer suit shoppers.
It will be the first major supermarket to do so, but others are likely to follow suit after the competition watchdog told supermarkets to clean up their act when it comes to promotions.
The supermarket says it is responding to customer feedback and simplifying its pricing strategy.
The vast majority of multi-buy promotions will have disappeared by August in favour of lower regular prices.
We believe we are taking the right decisions to achieve our vision to be the most trusted retailer where people love to work and shop,” says Sainsbury’s CEO Mike Coupe.
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Watchdog wants promotions to be clearer
The announcement from Sainsbury’s comes in the wake of heavy criticism of multi-buy offers.
The Competition and Markets Authority (CMA) has been investigating supermarket pricing since February.
It has since drawn up new voluntary guidelines for supermarkets stating that multi-buy offers must represent better value than a single product before offer.
“The CMA’s examination of the market following the super-complaint, found that supermarkets generally take compliance seriously, but there were some promotional practices that could mislead shoppers,”CMA executive director Michael Grenfall said last week.
“We welcome the commitment we have received from Asda as well as the engagement from other supermarkets, and expect them all to ensure that their practices are not misleading and that shoppers are better informed and able to choose the products that most suit their needs.”
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Prices are falling
The supermarkets have been locked in a price war for years now and the battle remains fierce.
“The market is competitive, and it will remain so for the foreseeable future,” says Coupe. He states that prices at Sainsbury’s are 4% lower than they were two years ago.
Sainsbury’s isn’t the only food shop taking steps to appease customers who are getting tired of confusing offers.
Tesco and Morrisons have both announced that they will reduce the number of multi-buy promotions they run, while Asda said it will focus on ensuring its multibuy deals offer better value for customers and be easier to understand.
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