Sainsbury prices rise faster than Tesco's
If you're watching the supermarket pennies you may want to avoid Sainsbury's and Morrisons. New research suggests average price rises at these two supermarkets accelerated at more than double that of Tesco's and Asda's in the four weeks to 7 July.
So where are the new price hikes exerting themselves the most? Think supermarket own-branded goods.
Price pledge?Sainsbury's is currently pledging to match the price of any branded goods against, for example, Tesco's own brand match scheme. That means Sainsbury's is limited in what price rises it can push through to regular shoppers. But its own-branded goods are a different matter.
Industry data seen by the Telegraph suggests that the average item price at Sainsbury's was upped 5.2% in comparison to prices at Tesco, which increased at 2.4%, over the four weeks to 7 July. "The average item price at Morrisons," said the paper, "also rose by 5.2% during the period, while Asda's rose by just 1.9%.
We asked Sainsbury's to respond to the information, based on Kantar Worldpanel data. "We don't recognise this data," it said. "Four week data is not particularly robust and is easily skewed by promotions."
Sainsbury's investors delightedIt added: "We know that price isn't the only thing that matters for customers. Values are also incredibly important, something our competitors know they cannot match us on."
Meanwhile, investors are clearly happy with what Sainsbury's is up to. Sainsbury's shares have soared almost +20% in the last year. Currently they sell for just under 390p, at time of writing, compared to around 323p a year ago.
Contrast that performance with Morrisons whose shares - selling for 287p - are up a rather more modest +2.8% on this time last year. Tesco shares have had a volatile time of it recently, but remain +13.4% up on a year ago at 369p.
Meanwhile if you're a Sainsbury's or Morrisons shopper, have you noticed price rises recently? Let us know.