Sainsbury announces new online venture as results improve

SainsburySupermarket chain Sainsbury’s has reported a strong 28% rise in pre-tax profit to £488m, in the year to March 22. The supermarket chain also plans to launch an online non-food service which rivals Asda and Tesco already offer.

Like-for-like sales, excluding fuel, also rose 3.9%, and it attracted an additional 2.5 million customers to its stores. The supermarket says the results mark the completion of its three year “Making Sainsbury’s Great Again” recovery plan, announced in October 2004.

In March this year it launched the “Feed your family for a fiver” campaign created by Abbott Mead Vickers.BBDO. It aimed to show customers how to make affordable, healthy and nutritious meals for a family of four with a budget of £5.

The supermarket chain claims that since the Jamie Oliver campaign began sales of featured ingredients have shown a marked increase. Sales of minced meat featured in the television commercial increased by 200% and demand for ‘basics’ spaghetti and tinned tomatoes also saw significant increases.

Chairman Philip Hampton says: “This year has been particularly significant for Sainsbury’s since it marked the completion of the ‘Making Sainsbury’s Great Again’ recovery plan announced in October 2004 and we moved from a period of recovery to growth.”

As part of its wider strategy it also plans to launch an online non-food offer with a £15m revenue investment in 2008-09. The service will launch in the first half of the next financial year.

Announcing the results chief executive Justin King says that consumer budgets are “clearly under pressure” and he expects the market to remain “intensely competitive”. However, he adds: “Sainsbury’s is now a much better business able to compete and grow in this challenging environment.”

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