Sainsbury's to Brand Match Asda prices online

Sainsbury's has fired the latest shots in the supermarket price war, extending its Asda Brand Match offer to online shoppers.

As of tomorrow, Sainsbury's will guarantee that online customers will not pay more for their internet purchase of identical branded groceries than they would at rival Asda.com.

The supermarket giant said customers will receive a confirmation that their online branded basket was cheaper at Sainsbury's. If not, they will receive a Brand Match money-offcoupon worth up to a maximum of £10 that can be redeemed against their next online shop.

Previously this was only available to those who shopped in store.

Robbie Feather, director of online at Sainsbury's, said he hoped the move would strengthen its online offering.

"Launching Brand Match online is part of the extensive work we've been doing to improve our website and our online service," he said.

"This is good news for our shoppers and another important step in the growth of our £1 billion online business."

The extension of Brand Match marks the latest move in a fiercely competitive market space. Many believe this battle is one of the main reasons why inflation has remained so low this year.

James Brown, partner at marketing consultants Simon-Kucher & Partners, has questioned just how long the supermarkets can continue discounting prices.

"The supermarkets are still trying to beat their rivals on price; however, it looks like they will struggle to push their suppliers much further on their prices.

"We have seen dairy farmers running a high-profile fightback gaining popular support. We expect to hear similar stories elsewhere, as suppliers of other food and drinks products see their margins pushed towards negative territory."