Cost-of-living Christmas: How Iceland, Sainsbury’s and Asda are helping festive shoppers

As Christmas draws near and the cost-of-living crisis continues to bite, many shoppers are feeling the pinch.

It is already taking its toll on demand in the grocery sector in the run-up to the big day as shoppers cut back to save for Christmas.

Last week, the Office for National Statistics (ONS) revealed that, despite inflation beginning to ease,  food retail sales dropped in October as shoppers are thought to be opting to save ahead of the big day.

However, supermarkets are doing their bit to help shoppers this Christmas. Grocery Gazette takes a look at some of the initiatives that have been introduced ahead of the festive period to help both shoppers and those in need.

Iceland shuns Christmas ad

Earlier this month, Iceland revealed to Grocery Gazette it would not launch a Christmas advert this year and would instead use funds to help its customers this festive period.

Executive chairman Richard Walker said: “As a business we were faced with a decision. Do we spend millions creating and sharing a TV advert or do we invest the money supporting our customers during the cost of living crisis? This was a no brainer for us.”

Among other cost-of-living initiatives, Iceland has slashed prices on over 1,000 household staples and expanded its £1 value range, introducing the price freeze initiative to 1,000s of more products.

Earlier this week, Walker took to Twitter to reveal that it would also increase staff discount to 20% in the run up to Christmas.

Asda vows to make cost-of-living Christmas more affordable

Asda has vowed to make “Christmas affordable for all customers” with initiatives such as its frozen Christmas dinner for six that costs £25, or £4.17 per head. The grocer  said that all the products featured in the promotion are cheaper than last year by an average of 8%.

The supermarket is also giving its Asda Reward app users a cash bonus of up to £5 later this month for saving money in their Christmas Saver Cashpots.

It is also giving back this Christmas and has extended its partnership with FareShare. It will donate the equivalent of 1m meals during the festive season.

Sainsbury’s partners with Fareshare

FareShare warhouse - re Tesco and Asda among supermarkets supporting Coronation Project

Sainsbury’s will donate more than one million meals to support low-income families struggling with rising living costs this winter, in a move that marks the launch of its new partnership with food redistribution charity FareShare.

Supplied by two of Sainsbury’s fresh food suppliers, Greencore and Cranswick, the initiative aims to distribute the meals to the communities most in need this winter period. The donations signal the start of FareShare’s Alliance Manufacturing programme, which will see the grocer work more closely with the food industry to battle the ongoing cost-of-living crisis.

The partnership was originally announced as part of the new Coronation Food Project, launched by King Charles earlier this month to address the growing problem of food insecurity in the UK.

“We will support as many people and families as we can who are facing the anxiety of not knowing how,  or when, they’ll  next  put  food on the table,” said Sainsbury’s CEO Simon Roberts. “Working together with two of our key suppliers, Cranswick and Greencore, we will donate more than a million meals this winter.  ”

The supermarket will also continue to fund include its surplus food redistribution system through Neighbourly, and Nourish the Nation,  a long-term programme designed specifically to tackle food poverty with Comic Relief.

Lidl gifts toys

Lidl has brought back its in-store Toy Bank campaign, in partnership with Neighbourly, where customers can donate unopened toys that will go to children of families struggling with the cost-of-living crisis, who otherwise might not receive a present on Christmas Day.

The scheme is highlighted in Lidl’s 2023 Christmas advert, and a plushie of the ad’s main character, a raccoonm will be sold in store with profits also going to Neighbourly.

Other year-long initiatives launched by the German-supermarket include its surplus food Feed it Back network, its annual £500,000 ‘Lidl Community, food donation Good to Give and discount Too Good to Waste boxes.

M&S donates Eat Well range

M&S is another supermarket that has teamed up with Fareshare to donate over one million freshly prepared meals from its ‘Eat Well’ range in the eight weeks leading up to Christmas.

Made at its 2 Sisters Food Group manufacturing sites, the donated meals consists of three of the retailer’s most popular seasonal ‘Eat Well’ products including chilli con carne and rice, tomato and basil soup, and pizza.

M&S managing director of food Alex Freudmann said: “I am hugely proud that we are coming together with our supplier partners and supporting FareShare by flipping our mindset from using food that is too good to waste to innovating to use capacity that is too good to waste.

“This donation is just the start and in the coming months we’ll be expanding this work to support more families who find themselves in need of a bit of extra help this winter.”

The Co-op shows the gift of community spirit

Like Iceland, The Co-op has shunned the battle of the Christmas ads and is instead urging shoppers to donate this festive period to showcase the ‘gift of community spirit’.

The convenience retailer is calling on members and customers to donate money, either via their rewards balance in the Co-op Membership app or via in-store donations at till points, which it has pledged to match.

The money will go towards local community needs such as hot meals and sports supplies for grass roots kids clubs. Raised funds will be shared equally between all current Local Community Fund causes and paid out to them in early 2024.

Co-op chief membership and marketing officer Kenyatte Nelson said: “Giving the gift of community spirit isn’t a trite marketing tag line, it’s a genuine desire by our members, customers and Co-op, to amass a Christmas funding boost to make a real difference to the communities we serve.”

Morrisons cuts festive prices

Morrisons is cutting the price of 58 popular festive items as part of a £4 million investment in customers.

“We know that Christmas is an expensive time of year and that our customers are having to make tough choices about what to put in their baskets,” said Morrisons chief customer and marketing officer, Rachel Eyre.

“We are working hard to help them when it comes to their festive grocery shopping and want to protect them from rising costs so despite the significant inflation we have seen over the last twelve months, our basket of 58 festive items is cheaper than it was in 2022.”

Popular Christmas products that are price locked until the end of the year include Mulled Wine, Mincemeat, Sage and Onion Stuffing and Buck Fizz.

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