UNITED KINGDOM-Sainsbury’s now cheaper than Asda for staple goods, says MySupermarket.com
Sainsbury’s has replaced Asda as the cheapest of the leading stores as the supermarket price war escalates, new figures have revealed.
A basket of 24 everyday food items costs £30.38 at Sainsbury’s compared to £30.43 at Asda, according to MySupermarket.com, a website which compares prices across different chains. The same basket of goods, including items such as white bread, bananas, eggs, milk, potatoes, beef mince and orange juice, cost £31.15 at Tesco. Asda has occupied the position of cheapest supermarket for most of the past year since the economic downturn took hold, except in June 2008 when it was held by Tesco.
Sainsbury’s has seen prices increase by 13.4 per cent in the past 12 months, compared to an increase of 19.2 per cent at Asda and 20.5 per cent at Tesco. Analysts said heavy discounting on certain items could sway the overall cost of a basket of staple goods At Sainsbury’s a dozen medium free range eggs cost £1.72 compared to £2.58 for free range eggs at Asda and Tesco.
Eighty tea bags cost £1.29 at Sainsbury’s but £1.39 at Asda and Tesco. Despite the discounts, food and drink prices increased by 4.9 per cent in the 12 months to February. The biggest price increases this month are on fresh goods, with the price of cucumber increasing by more than 80 per cent in the past 12 months. Jonny Steel, a spokesman for MySupermarket.com, said: "Consumers are yet again seeing considerable increases on the price of their everyday food items. With increases such as this, many shoppers are turning to cheaper options where possible and surrendering brand loyalty in order to beat the increases.
"By downshifting to supermarket own brands on everyday products and taking full advantage of supermarket offers, we know it is possible to save around 20 per cent on a typical weekly shop, which beats the year on year food inflation." Analysts said supermarkets are aware that consumers are keen to save money on their weekly shop amid the recession. James Flower, a senior consultant at Verdict, said: "If just one product is discounted, it can affect the overall figure.
This is more about Sainsbury’s saying that it is aware that customers are pressed for cash and is responding." He added that customers are keen to save money are trading down to discount stores or middle- market supermarkets that are offering discounts. "All the supermarkets are offering discounts to communicate better value," he said. An Asda spokesman said: "ASDA has been voted cheapest supermarket for the last 11 years and prices is what is important to customers and they are voting with their money.
