How can Sainsbury’s increase its market share?

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Established in 1869 and part of J Sainsbury’s plc, Sainsbury’s Supermarkets Ltd is the UK’s second largest food retail chain, with 535 stores and annual sales of over 12 billion. J Sainsbury’s plc is a leading UK and US food retailer group with interests in financial services and property. Comprising Sainsbury’s Supermarkets and Sainsbury’s Bank in the UK and Shaw’s Supermarkets in the US, the group employs over 170,000 people.

Sainsbury’s plc objective is to meet its customers’ needs effectively and also provide shareholders with good, sustainable financial returns. Sainsbury’s aims to ensure all colleagues have opportunities to develop their abilities and are well rewarded for their contribution to the success of the business. Its policy is to work with all of its suppliers fairly, recognising the mutual benefit of satisfying customers’ needs. It also aims to fulfil its responsibilities to the communities and environments in which it operates.

Sainsbury’s plc Mission Statement: Our mission is to be the consumer’s first choice for food, delivering products of outstanding quality and great service at a competitive cost through working ‘faster, simpler and together’. Quality food is a priority for our customers and a key component of the Sainsbury’s brand. Sainsbury’s have invested in their food ranges and, during the year, have improved or developed over 3,200 products. Which of their own-label sub brands are again amongst the best in the UK.

Sainsbury’s rigorously monitor 10,000 lines weekly to ensure that they remain competitive. They have reinvested in some of their cost savings in price adjustments. Alongside this we continue to run a highly attractive, sustainable promotional programme. They have achieved cost savings of 160 million in the year delivering a total of 250 million since they began the programme. These savings will be reinvested in enhancing the customer offer, building sales and in improving their operating margins.

They are replacing our legacy systems with ‘best in class’ IT solutions to help us gain competitive advantage. The Accenture relationship continues to go well and systems, which have already been implemented, are delivering substantial business benefits. Sainsbury’s are second in the UK on-line grocery market with current annualised sales of around 110 million and around 71 per cent coverage of UK households, with 25,000 orders per week. Their current market share in London is 36 per cent. Improved volumes and better integration of their home delivery service into stores has reduced new customer acquisition costs by 60 per cent and fulfilment costs by 30 per cent in the second half as compared to the first half of the year.

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