Cost-cutters continue to battle

Sainsbury’s is to extend its cost-cutting campaign to try to win back market share.

The chain will push its February Savers campaign of 200 reduced items into next month and possibly April. The name of the promotion will change to Spring Savers.

The supermarket said it was extending the campaign, which began at the start of the year, because it had been “extremely successful”.

To illustrate the success of the campaign, a Sainsbury’s spokesman said that it had sold a year’s supply of its own-brand Chicken Tikka in two weeks. The item had been cut from 2.79 to 1.39.

But industry sources are unsure whether this move will be enough to win back pre-eminence in the sector. The increase in sales is understood to be between eight and nine per cent.

One source said: “These figures are prominent but not wildly brilliant. Sainsbury’s is playing catch-up with Tesco at the moment, but nobody knows whether this will be enough to get close to it.”

Sainsbury’s adds: “The market is very competitive and our research tells us that custom-ers say price is the main thing influencing who they shop with.”

Nielsen figures show that Tesco has a 20 per cent share of the UK market, while Sainsbury’s trails with 18 per cent. Asda, then Safeway, follow behind.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here