A recent poll conducted by the Grocery Gazette indicates that a significant 85% of respondents believe supermarkets are justified in moving away from price matching strategies typically associated with discount retailers like Aldi. This comes in the wake of Asda’s decision last month to eliminate its Aldi and Lidl price match scheme, marking a shift in their pricing approach after only one year of implementation.

Asda’s decision represents a broader trend among traditional supermarkets, as they prioritise their own pricing strategies over those of competitors. Following Asda’s lead, data from private label consultancy IPLC, shared by Paul Stainton in The Grocer, reveals that Tesco has witnessed a decline in the number of products included in its Price Match initiative, decreasing from 790 in August 2024 to 645 as of February 2025. Similarly, Sainsbury’s has adjusted its campaign, reducing the number of items from its price match scheme by 75 to a total of 606 items since November 2024.

The Grocery Gazette’s survey included 242 respondents, with an overwhelming majority supporting the supermarkets’ decision to scale back on price matching. Only 15% expressed disagreement with this shift in strategy.

Commenting on the implications of such decisions, Stainton remarked to the Grocery Gazette that previously matching Aldi prices on a wide assortment of products likely resulted in “significant margin loss” for these mainstream retailers. Ged Futter, founder of The Retail Mind, added that the reduction in price match items may be attributed to supermarkets not being “fully in control of price match” and constantly promoting their competitors’ pricing advantages.

Chris Daly, chief executive of the Chartered Institute of Marketing, acknowledged the potential short-term benefits of price matching for retaining customers and enhancing perceptions of value. However, he cautioned that it risks devolving a retailer’s pricing strategy into a “race to the bottom,” potentially eroding profit margins without fostering long-term loyalty. Daly suggested that supermarkets should focus on developing unique value propositions, including superior customer service, exclusive products, loyalty programmes, and convenience features. He emphasised that successful differentiation can lead to stronger emotional connections with customers and ultimately enhance retention and profitability.

Nonetheless, Daly highlighted the inherent risks in moving away from competitive pricing, noting that consumers might begin to explore alternative shopping options if they perceive a lack of competitive offerings. He stressed the importance of effective communication from retailers regarding their value, whether that be through improved quality, more appealing promotions, or customised rewards, to ensure that shoppers feel they are securing the best deals despite the absence of a direct price match mechanism.

Source: Noah Wire Services