[ad_1]
Sainsbury’s: battling inflation
“We are absolutely determined to battle inflation for our customers,” Simon Roberts, chief executive of Sainsbury’s, told investors. Our focus on value has never been greater and we have spent over £560 million keeping our prices low over the last two years. As a result, we are now the best value compared to our competitors that we have been in many years and we are delivering improved market share performance in Sainsbury’s and Argos.
“We are two years into our plan to put food back at the heart of Sainsbury’s and have focused our efforts on reducing costs right across the business… At the same time, we have improved the performance and profitability of Argos, Tu, Nectar and Financial Services.” Combined, the businesses, along with Habitat, are £145 million more profitable than before the pandemic, according to Sainbury’s.
Value is a major consideration in retail right now with the cost of living crisis. Sainsbury’s has taken a leaf out of Tesco’s book by promoting its Nectar Card price scheme to customers, similar to the Tesco Club Card programme. Sainsbury’s currently has 11 million Nectar Card users. It also offers an Aldi Price Match. The company says it has invested £200 million in cutting prices, while delivering £900 million of cost savings over the last two years. It is currently on track to make £1.3 billion of synergies over three years.
Meanwhile, the company says Argos has managed to grow market share under its ownership, despite a weak general merchandise market.
[ad_2]
Source link