Savacentre name comes under review

J Sainsbury is considering changing the name of its Savacentre hypermarket chain as part of the strategic review of the business, which was announced at the company’s financial results in May.

The review was launched to look at the poorly performing clothing, electricals and other non-food areas after year-end results showed profits were down 11.9 per cent to 30.3m despite sales going up 6.8 per cent to 802m.

Savacentre said it was undertaking “a major strategic review to confirm the future direction of the 13-strong chain”. The company has called in consultants Coopers & Lybrand Management to aid the review.

The main findings are thought to include the need to move Savacentre closer to the Sainsbury’s supermarket chain on price and to offer more fresh food. It could follow Tesco, which is testing a hypermarket-style format called Tesco Extra in Pitsea, Essex.

Other options include withdrawing from the clothing and electricals areas or franchising them out.

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