Feb 10, 2021

Sainsbury’s takes on Aldi in supermarket price war

The supermarket price-war has edged up a notch after Sainsbury's followed Tesco's Aldi price-match scheme. While people are buying more food to eat at home, the supermarkets say they are making less money. Supermarkets make less money out of online shopping because of delivery and higher staffing costs. The latest price-war will hit profit margins already squeezed to between 2-4%. But on the other hand, the move to online has benefited the traditional supermarkets as Aldi's smaller online offering has left it unable to take advantage of the booming demand for home deliveries. In fact Aldi has seen its sales growth fall behind some of its rivals during the pandemic.

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