Sainsbury's sales fall AGAIN as Justin King jumps ship

11 June 2014

Justin+King Sainsbury’s bigwig Justin King is getting ready to move on to pastures new, but not before announcing that Sainsbury’s like-for-like sales have dropped again.

It’s the second time that Sainsbury’s have reported a loss –previous to that, it had nine unblemished, consecutive years of growth.

So what’s the problem? Well, we all know the impact that the budget supermarkets have had on the more mid-range stores, but they’re also feeling the pinch of food deflation – all those £1 cartons of milk are starting to take their toll on sales figures.

Mr King said, while clearing his desk and packing his bags for Florida:

‘Lower food price inflation and reduced fuel prices are a welcome respite to customers' finances but they continue to spend cautiously, leading to industry growth in the quarter being the slowest in a decade. Throughout the quarter we have continued to invest in reducing prices and improving quality, increasing the value of our offer.’

But is this approach working? King says he’s confident that the strategy will still put them in a better position than Tesco, who are struggling with their worst quarter in 40 years.

However, it remains to be seen whether that strategy will change when group commercial director Mike Coupe takes over in July. After all, their Taste the Difference posh range was up 10% this quarter, which surely points at a need for them to become more upmarket, rather than reduce prices to compete with the budget supermarkets?

Honestly, let me give them a 10 minute Powerpoint presentation and I'll sort it myself.

5 comments

  • Her L.
    It's a shame because Sainsbury's ticks pretty much every box for me: decent range, nice ethics, isn't Tesco, home delivery. What lets it down is at the checkout - the weekly shop is consistently more (compared with MySupermarket) than the equivalent shop at Tesco. I've no interest in a half-shop at Aldi or Lidl and as soon as Morrisons deliver to my area I'm jumping ship to the cheeky northern swines.
  • shiftynifity
    oh lola how could you…but then you are a show girl
  • JW
    Lucy, with respect, you won't be able to sort this out until you grasp the meaning of "loss" in terms of retailer profits. Being down on the previous year does not constitute a loss as you continually seem to imply in many of your posts........
  • Alexis
    I use Sainsburys for everyday stuff because it's nearer. But the Big Shop is done at Asda. Patronising 2p off your next shop vouchers don't help them.
  • Jack S.
    "Reduced fuel prices" ?!? Huh? Is he on crack?

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