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.

Comments

    Leave a comment

    Close

    Discover even more as a subscriber

    This article is available for subscribers only.

    Sign up now for your access-all-areas pass.

    Subscribers get unlimited access to unrivalled coverage of the biggest issues in marketing and world-renowned columnists, alongside carefully curated reports and briefings from Econsultancy. Find out more.

    If you are an existing print subscriber find out how you can get access here.

    Subscribe now

    Got a question?

    Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

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

    Subscribers get unlimited access to unrivalled coverage of the biggest issues in marketing and world-renowned columnists, alongside carefully curated reports and briefings from Econsultancy. Find out more.

    If you are an existing print subscriber find out how you can get access here.

    Subscribe now