English supermarket chain Sainsbury’s announced that it would not have any buy one get one promotions in future. The company thus becomes the first UK supermarket chain to axe multi-buy promotions. The decision came out after Competition & Markets Authority (CMA) released a report saying that the supermarkets in UK were luring in customers to spend £1,274 a year more than what they intend to using bogof deals and multi buy promotions. The supermarket said that it will no more have any confusing or misleading promotions and would be true to its shoppers.
Sainsbury’s said in a statement that the bogof deals and similar promotions will gradually be taken off and by August 2016 everything would disappear from the market. On the wake of Sainsbury’s announcement, more supermarkets including multinational grocery and general retailer Tesco has indicated its inclination towards bringing in a similar decision.
These mainstream retailers including the big four has been copying the pricing model of German discounters but without really offering the shoppers any discounts. Different studies conducted by Competition & Markets Authority (CMA) and the Government’s Money Advice Service (MAS) found that these supermarkets have been luring in shoppers to spend more money on things that they have not intend to buy through bogof and other similar promotions. many of these promotions were confusing and were accused of not really saving any money for the shoppers either.