Sainsbury's attributes profit rise to 'values-driven' brand strategy

Sainsbury's said its focus on "high-quality, affordable" own-brand products and its Brand Match scheme have helped propel sales, as the supermarket revealed half-year profits are up 9.1% year on year to £433m.

Sainsbury's: half-year profits reach £433m
Sainsbury's: half-year profits reach £433m

The retailer, which today unveiled details of its Christmas ad campaign, continues to outperform its rival supermarkets and now boasts a 16.8% share of the UK’s grocery market – its highest in a decade.

Sainsbury’s total sales for the 28 weeks to 28 September, including VAT and fuel, reached £13.95bn, up 4.4% on the previous year, marking 35 consecutive quarters of growth for the supermarket.

The company said its 'Live Well for Less' marketing strategy was proving a hit, with sales of its own-brand products growing at twice the speed of branded goods.

Its newly redesigned Taste the Difference range is showing double-digit growth, it claims, although sales of Basics products experienced "marginal decline".

A "compelling" general merchandise and clothing strategy was fuelling growth at "around twice the rate" of food sales, while online grocery sales are up 15% year on year, accounting for over £1bn in annualised sales.

Chief executive Justin King believes the success can be attributed to Sainsbury’s "values-driven" culture, following its high-profile dispute with rival Tesco over its price comparison scheme:

He said: "We are helping customers ‘Live Well for Less’ through high-quality, affordable own-brand products, Brand Match, Nectar and targeted coupon-at-till promotions.

"Whilst customers' budgets remain tight and any recovery in the economy may take time to take effect, our consistent strategy and strong values-driven culture mean we are well placed to continue to deliver for customers, colleagues and shareholders."


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus