Major Supermarkets Face Backlash Over Stealth Reduction of Budget Food Lines
Three of Britain's largest supermarket chains – Tesco, Sainsbury's and Morrisons – have come under fire for what critics describe as a "quiet" reduction in their budget product ranges. New analysis reveals these retailers have collectively cut approximately 12 per cent of their value-tier offerings, a move that could leave many families facing higher grocery bills at the checkout.
Detailed Analysis Reveals Significant Range Reductions
Research conducted by retail analysts Assosia has uncovered the extent of these reductions across the supermarket giants' budget lines. The findings show a particularly sharp decline at Morrisons, where the number of products in their Morrisons Savers and Wonky ranges has fallen by 15.6%. Meanwhile, Tesco has reduced its Exclusively at Tesco range by 13.6%, and Sainsbury's has cut its Stamford Street products by 6.2%.
Overall, the total number of cheaper products available across all three supermarkets has decreased from 627 to 553 items, representing an 11.8% reduction in budget options for shoppers. This significant contraction in affordable product lines comes at a time when many households continue to face financial pressures from the ongoing cost of living crisis.
Industry Expert Explains the Retail Strategy Behind the Cuts
Richard Harrow, partner at private label consultancy IPLC UK, provided insight into the supermarkets' strategic thinking behind these range reductions. "This tier is often sold either at an extremely low margin or in some cases negative margin," he explained. "There's more wiggle room in the middle tier. Value tiers are margin dilutive, no matter what you do. I'm not really surprised to see retailers thinning their range and removing a few items."
Harrow further elaborated on the commercial pressures driving these decisions: "If you overlay that with the success of the premium tier, you can see how a category manager would want to find the space for a higher-margin product that gives them a point of difference over the competition." He suggested that supermarkets might be shifting their value propositions toward different mechanisms, noting: "Tesco and Sainsbury's are driving value through very different mechanics, such as loyalty card schemes and Aldi Price Match. They may have concluded they don't need a large value tier to send a strong value message."
Supermarket Responses to the Budget Range Controversy
All three supermarket chains have issued statements defending their approaches to value pricing and product ranges. A Tesco spokesperson emphasised their commitment to competitive pricing: "We work hard to provide great prices on our Exclusively at Tesco ranges and continue to review the products included in these ranges to ensure they best meet the needs of our customers. The majority of products in our Exclusively at Tesco ranges are included in our Aldi Price Match scheme, which covers more than 650 products in total."
Morrisons highlighted their ongoing commitment to budget-conscious shoppers: "We currently have over 190 products in our Morrisons Savers range, with lots more exciting lines planned for 2026. We are constantly listening to our customers and reviewing our Morrisons Savers range to ensure it meets the needs of our most price-sensitive customers."
Sainsbury's pointed to their broader value initiatives: "Our Stamford Street Co range can vary over time, with most items the same price or cheaper than in January 2025. We have invested £1bn over the last four years to help customers access great quality at lower prices and remain focused on offering outstanding value across thousands of products through our Aldi Price Match scheme, Nectar Prices, Your Nectar Prices and our own brand value lines."
Despite these reassurances, consumer advocates remain concerned about the reduction in dedicated budget ranges, particularly as supermarkets continue to promote their premium and middle-tier products more prominently. The controversy highlights the ongoing tension between supermarket profitability and affordable food access during economically challenging times.
