Sainsbury’s outperforms Tesco

Sainsbury’s says “strong” sales and profits in the second quarter were driven by its proposition that offers “great value without compromising on high quality”.

/h/c/t/sainsbury_store.jpg

Like for like sales, which exclude stores open for less than a year, increased 5.4% for the 16 weeks to 1 October. Total sales increased 7.8%.

The figures are in line with the half-year results, and like for like sales for the six month period increased 5.1%, while total sales increased 7.6%.

Sainsbury’s growth comes as Tesco reports a 0.5% fall in like for like sales for the first-half.

Both supermarkets are ramping up their marketing activity as they vie to offer shoppers the best value, after Tesco launched its Big Price Drop initiative last month.

Sainsbury’s recently overhauled its marketing strategy and has introduced the “Live Well For Less” strapline in a bid to better communicate its “unique combination of high quality … and commitment to delivering value”.

Justin King, Sainsbury’s CEO, says: “We have delivered a good sales performance in a tough consumer environment. Our market-leading petrol offers, combined with strong promotions and competitive pricing on branded goods, ensure our customers can enjoy great value without compromising on the high quality Sainsbury’s fresh food and own label products they love.

“Through ’Live Well For Less’ we are demonstrating to customers that they need look no further than Sainsbury’s to solve the challenges of their grocery shopping. We expect the market environment to remain very competitive for the foreseeable future but we are confident in our ability to grow by doing a great job for our customers.”

King adds that both Sainsbury’s premium “Taste the Difference” range, which was re-launched last year, and its Basics range saw strong growth during the period. It is currently rolling out a relaunched “by Sainsbury’s” core range and promises to offer customers “the same or better” quality than branded products, at 20% lower prices.

Sainsbury’s convenience and non-food businesses are growing ahead of the core supermarket business.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

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

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest 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 will be 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.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

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