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| Sainsbury's axes two-for-one offers amid consumer spending concerns | Sainsbury's axes two-for-one offers amid consumer spending concerns |
| (35 minutes later) | |
| Sainsbury’s is to scrap multi-buy promotions, after a survey found that 76% of supermarket shoppers regularly spend more than they intend to due to special offers including buy-one-get-one-free (bogof) deals. | Sainsbury’s is to scrap multi-buy promotions, after a survey found that 76% of supermarket shoppers regularly spend more than they intend to due to special offers including buy-one-get-one-free (bogof) deals. |
| The grocer plans to phase out multi-buy promotions across its grocery business by August. | The grocer plans to phase out multi-buy promotions across its grocery business by August. |
| Sainsbury’s said its customers had already responded positively after it removed more than half of multi-buy promotions on its grocery products. The company said on Thursday that from March it will scrap multi-buys from both branded and own-brand soft drinks, confectionery, biscuits and crisps. | Sainsbury’s said its customers had already responded positively after it removed more than half of multi-buy promotions on its grocery products. The company said on Thursday that from March it will scrap multi-buys from both branded and own-brand soft drinks, confectionery, biscuits and crisps. |
| The announcement followed the publication of a survey by a government-backed body, which found that supermarket shoppers seduced by bogof deals and other special offers end up paying more than £1,000 more a year on average than planned. | The announcement followed the publication of a survey by a government-backed body, which found that supermarket shoppers seduced by bogof deals and other special offers end up paying more than £1,000 more a year on average than planned. |
| The Money Advice Service (MAS) found that 76% of people regularly spend more than they meant to. | The Money Advice Service (MAS) found that 76% of people regularly spend more than they meant to. |
| On average, according to the MAS, people said they spend £11.14 more than they intended to per shop. As the average shopper visits the supermarket more than twice (2.2 times) a week, the Service calculated that this could lead someone to spend about £1,274 per year more than intended. | On average, according to the MAS, people said they spend £11.14 more than they intended to per shop. As the average shopper visits the supermarket more than twice (2.2 times) a week, the Service calculated that this could lead someone to spend about £1,274 per year more than intended. |
| Related: Can you spot the best supermarket deal? Take the quiz below to find out | |
| MAS also asked more than 2,000 consumers to select the cheapest options when presented with four sets of offers as they might be found in a supermarket. Just one in 50 (2%) people selected the best-value option from all four sets of offers. Three quarters (74%) of people answered at least one question correctly. | MAS also asked more than 2,000 consumers to select the cheapest options when presented with four sets of offers as they might be found in a supermarket. Just one in 50 (2%) people selected the best-value option from all four sets of offers. Three quarters (74%) of people answered at least one question correctly. |
| Hunger, boredom and children’s “pester power” were also common reasons people gave for piling more into their trolley than they had intended. | Hunger, boredom and children’s “pester power” were also common reasons people gave for piling more into their trolley than they had intended. |
| Six in 10 (59%) people said shopping on an empty stomach makes them spend more. In this scenario, women were more likely to stock up on chocolate, sweets and pastries, while hungry men were more susceptible to buying meat and alcohol. | Six in 10 (59%) people said shopping on an empty stomach makes them spend more. In this scenario, women were more likely to stock up on chocolate, sweets and pastries, while hungry men were more susceptible to buying meat and alcohol. |
| One in three (31%) people spend more when they are bored in the supermarket, while one in four (26%) said pressure from children makes them stuff their trolley with extra purchases. | One in three (31%) people spend more when they are bored in the supermarket, while one in four (26%) said pressure from children makes them stuff their trolley with extra purchases. |
| The research also found that people who made a shopping list, and stuck to it, typically spent £200 a year less than those who rarely or never made a list. | The research also found that people who made a shopping list, and stuck to it, typically spent £200 a year less than those who rarely or never made a list. |
| Those who stuck to a shopping list spent £6,374 per year on average in the supermarket - £217 less than the £6,591 typically spent a year by those who do not bother making a list. | Those who stuck to a shopping list spent £6,374 per year on average in the supermarket - £217 less than the £6,591 typically spent a year by those who do not bother making a list. |
| The MAS is an independent body set up by the government to offer money tips. | The MAS is an independent body set up by the government to offer money tips. |
| John Penberthy-Smith, customer director for the MAS, said: “The problem is that quite often we see a special offer at the supermarket and we don’t want to miss out - so we throw it into our trolley without really thinking about whether it is a good deal or whether we actually need it. | John Penberthy-Smith, customer director for the MAS, said: “The problem is that quite often we see a special offer at the supermarket and we don’t want to miss out - so we throw it into our trolley without really thinking about whether it is a good deal or whether we actually need it. |
| “Often deals can be difficult to understand and compare with other prices. Then there’s waste - even if the offers are cheaper, bigger packets or 50% extra are not always good value for money if we end up chucking most of it away. | “Often deals can be difficult to understand and compare with other prices. Then there’s waste - even if the offers are cheaper, bigger packets or 50% extra are not always good value for money if we end up chucking most of it away. |
| “The best thing to do if you want to save cash is to write a shopping list and try to stick to it. You can also try shopping when you’ve just eaten and you’re not tired.” | “The best thing to do if you want to save cash is to write a shopping list and try to stick to it. You can also try shopping when you’ve just eaten and you’re not tired.” |
| Sainsbury’s has responded to the supermarket price wars by promising less promotions and price cuts instead. | Sainsbury’s has responded to the supermarket price wars by promising less promotions and price cuts instead. |
| Related: Sainsbury’s drops Tesco from Brand Match price comparison | Related: Sainsbury’s drops Tesco from Brand Match price comparison |
| Sainsbury’s food commercial director Paul Mills-Hicks said: “Customer shopping habits have changed significantly in recent years, with people shopping more frequently – often seeking to buy what they need at that moment in time.” | Sainsbury’s food commercial director Paul Mills-Hicks said: “Customer shopping habits have changed significantly in recent years, with people shopping more frequently – often seeking to buy what they need at that moment in time.” |
| He said that by replacing multi-buy promotions with lower regular prices, “we are making it easier for customers to buy the products they need, in the quantities they need, without having to buy multiple items to enjoy great value. Since we started simplifying our pricing approach we’ve seen a much greater variety of products in our customers’ baskets, signalling that they like the flexibility to make their own choices.” | He said that by replacing multi-buy promotions with lower regular prices, “we are making it easier for customers to buy the products they need, in the quantities they need, without having to buy multiple items to enjoy great value. Since we started simplifying our pricing approach we’ve seen a much greater variety of products in our customers’ baskets, signalling that they like the flexibility to make their own choices.” |
| The Competitions and Markets Authority said it was not contemplating banning supermarket bogof deals and special offers. | The Competitions and Markets Authority said it was not contemplating banning supermarket bogof deals and special offers. |
| In response to a complaint from the consumer group Which? in April 2015, it was “currently working with businesses to ensure that supermarkets’ promotional practices can be clearly understood by shoppers and are not misleading. The CMA expects to provide further details of its engagement with retailers in the next few weeks.” | In response to a complaint from the consumer group Which? in April 2015, it was “currently working with businesses to ensure that supermarkets’ promotional practices can be clearly understood by shoppers and are not misleading. The CMA expects to provide further details of its engagement with retailers in the next few weeks.” |
| MAS survey results | MAS survey results |
| Here are the percentages of shoppers who say they spend more due to certain circumstances, and the average amount extra they say they spend on a shop because of these circumstances: | Here are the percentages of shoppers who say they spend more due to certain circumstances, and the average amount extra they say they spend on a shop because of these circumstances: |
| • Special offers, 76%, £11.14 | • Special offers, 76%, £11.14 |
| • Hunger, 59%, £10.87 | • Hunger, 59%, £10.87 |
| • Not having a clear idea or plan of what they want to buy beforehand, 49%, £13.44 | • Not having a clear idea or plan of what they want to buy beforehand, 49%, £13.44 |
| • End of aisle displays, 45%, £11.91 | • End of aisle displays, 45%, £11.91 |
| • Boredom, 31%, £14.53 | • Boredom, 31%, £14.53 |
| • Children/pester power, 26%, £15.50 | • Children/pester power, 26%, £15.50 |
| • Till displays, 23%, £16.28 | • Till displays, 23%, £16.28 |
| • Tiredness, 22%, £13.94 | • Tiredness, 22%, £13.94 |