Cheap food soar Sainsbury's sales

26 March 2009

http://img14.imageshack.us/img14/8486/45355540sainsburys22644.jpgIs Sainsburys getting better and cheaper? If numbers don't lie, then the announcement of a 6.2% increase in sales at the UK's 3rd largest supermarket chain would be a resounding 'yes'.  According to Reuters, analysts forcast sales growth between 4.7% to 5.8%, but the retailer surpassed that seeing a larger increase in demand for its 550 "basic" products, a reflection of cash strapped shoppers looking for a bargain.

“These sales reflect the strength and resilience of the Sainsbury’s brand as we have continued to develop our offer to help customers get the best value from their household budgets,” said Chief Executive Justin King.

This is by far the best performance growth amongst all major supermarket chains this year, mostly due to sales of their low cost 'basic' products, which has leapt by 60%.  Morrisons and Waitrose are also not doing too badly, reporting a 7.9% rise in sales last year and 5.2% in the first five weeks this year respectively. I personally never shop at Sainsbury's, but from reading about their budget "Taste the difference" (TOD) products and catering to consumers with limited budgets, I might need to pop down the road and see what it's all about. Will the rest of the supermarket chains keep up with the tough times?

[Forbes]

7 comments

  • Lam
    Its getting cheaper for sure. I was in this morning and they have 100's of thiings for just £1.00 like Head&Shoulders shamoos and conditioners - Aquafresh Toothbrushes - Aquafresh Mouthwash - all Loyd Grossman pasta sauces - Cadbury Bournville Rum&Rasin 180g chocolate - Premier deli chorizo - to name just a few things I got for my Nan. Think Asda advetising 7000 items for £1 has made all the other stores start dropping theirs to a quid
  • Vince V.
    hey lam! wow, sounds almost like poundsavers. thanks for sharing as always!
  • Shaune
    The supermarkets are probably the only companies who'll survive the credit crunch. Other than on-line merchants that is.
  • Anita C.
    Waitrose and Sainsburys are the only places I shop, ASDA's not that bad, Morissons have terrible food and Tesco, well frankly I've yet to encounter one that doesn't scare the bejesus out of me, horrible shop, horrible staff and vile punters.
  • veedubjai
    Supermarkets will ALWAYS survive in the long term because everyone has to eat whether its Boom or Bust.
  • Krispii
    I think you'll find that Taste the Difference is a premium own brand range - for the cheaper stuff it's Basics! I've always bought Basics Orange Juice & tissues (as my kids use them for mopping up anything, but rarely noses!) and also the packs of beef mince. Dropping a level from supermarket premium to standard, or standard to basics, is a surefire money saver and the difference is barely noticeable.
  • Mr S.
    If only we could say the same for Sainsbury's Central :(

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