Sainsbury’s marketing boosts performance

The supermarket has posted a 2.5 per cent rise in pre-tax profit to £405m and a 4 per cent rise in revenue to £13,365m, in the six months to 29 September. Like-for-like sales increased 1.7 per cent.

The supermarket’s market share reached 16.7 per cent during the period – its highest in more than a decade.

The rise in sales and profit is a good sign for the supermarket ahead of the Christmas period. Analysts suggest that its ability to combine good quality food with compelling value for money messages will mean Sainsbury’s is “one of the winners” this Christmas.

CEO Justin King says marketing initiatives such as Brand Match, its Nectar loyalty partnership and its targeted coupons at till scheme alongside its Live Well for Less positioning helped drive success.

He says: “Whilst the wider economic situation remains challenging, we are well positioned to help our customers Live Well For Less. Our long-standing consistent strategy, combined with our customer insight and strong value-driven culture, will continue to deliver for customers, colleagues and shareholders.”

Speaking to Marketing Week ahead of the results, Sarah Warby, marketing director at Sainsbury’s says: “Our Live Well For Less marketing strategy has contributed to our performance this year. It’s so rooted in what our customer wants that we’ve ben able to leverage this throughout the year. This year has been a year like no other for us with the Jubilee and the Paralympics and marketing has played its part in making them a success for us as a brand.

With the supermarket’s marketing team now fully staffed following last week’s appointments, Warby says the focus will soon switch from Christmas to preparing its first campaign for 2013. 

Morrisons reported a 2.1 per cent fall in sales in the three months to 28 October. Asda is due to report results tomorrow (15 November).