Pork product price cuts part of Sainsbury’s response to “challenge”

Sainsbury’s has warned that the outlook for the remainder of the financial year is set to remain “challenging”, with food price deflation likely to continue. 

Reporting a 0.4% decline in retail sales for the 14 weeks to January 3, 2015, the supermarket group headlined its Q3 performance as “good” in the context of what has been a “tough market”.  It also reported strong Christmas sales, however, with over 29.5m customer transactions taking place during in the seven days before December 25, a period during which customers bought over 57m mince pies and over 550,000 turkeys, up 8% on 2013.

“Our performance in the third quarter showed an improving trend quarter-on-quarter,” said Sainsbury’s, whose product portfolio includes a 100% commitment to British pork, with ham being 95% British and sausages being 90% British.

“Given the uncertainty in the trading environment, however, food price deflation and the price reductions we’ve already announced, we currently expect our fourth quarter like-for-like to be similar to that of our first half.”

Pork product price cuts

The supermarket’s pricing strategy, first announced in November last year as part of a £150m “investment” in the retail price of some of the chain’s most popular products, moved forward this week with a “lowering of prices” being applied to more than 700 items, including meat, fish and poultry categories.

The reductions made for pigmeat products are as follows:

  • 8 British pork sausages 454g, reduced from £1.40 to £1.10
  • 12 Smoked back bacon 2 x 225g reduced from £4.00 to £3.50
  • 12 Unsmoked bacon rashers 2 x 225g reduced from £4.00 to £3.50
  • Rind-on unsmoked gammon steaks 450g reduced from £4.50 to £3.50
  • Unsmoked gammon joint 750g reduced from £4.00 to £3.50
  • 3 British pork chops 525g reduced from £4.00 to £3.30

Access Sainsbury’s full trading statement

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