Supermarkets have reported strong Christmas results despite economic headwinds, but analysts say for the traditional grocers, this good fortune is unlikely to last.
Sainsbury’s focus on value has helped the supermarket fend off competition from the discount supermarkets over Christmas, as traditional grocers battle to maintain market share.
Sainsbury’s, Tesco and Morrisons have all lost market share over the 12 weeks to the end of November, while discounters Aldi and Lidl have made gains, Kantar data reveals.
Driving awareness and salience of the Taste the Difference brand has been a core mission of Sainsbury’s throughout the year, head of campaigns Laura Boothby says.
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The grocer’s CEO has confirmed customers are trading down to cheaper, own-brand products as the cost of living rises – but premium sales are holding up.
Sainsbury’s CEO Simon Roberts says value will remain the “key priority” for the supermarket over the coming year, as it commits to “keeping prices low” despite rising inflation.
Sainsbury’s magazine recipe scored in the top 30% of UK ads for its ability to grab attention, as well as in the top 25% for building salience and the top 10% for brand cues.
After posting strong Christmas trading results this week, the UK’s major supermarkets are pledging to keep their prices low this year even in the face of dramatically rising costs, driven by inflation, higher wages and the cost of living crisis.
Offering low prices is a “key priority” for the supermarket, which is pledging to match discounter prices across more ranges despite surging festive sales of premium products.
The supermarket has enlisted the support of Stephen Fry and Etta James in this year’s ad, which focuses on family and the joy of a Christmas dinner.
Finding consumers are “really responding” to digital marketing, Sainsbury’s is celebrating its status as the UK’s second largest online grocery retailer after increasing market share.
CEO Simon Roberts says Sainsbury’s is on track to triple the rate of product innovation, with plans to add a total of 1,900 new products over the year.
CEO Simon Roberts says Sainsbury’s extended price lock programme and Aldi Price Match scheme is already driving improved value perception among customers.
Tesco CEO Ken Murphy claims it has strengthened its brand health across all metrics this year – but how does the supermarket compare to its UK competitors?