Sainsbury’s says its latest value-oriented approach is making “strong early progress,” and CEO Simon Roberts claims to be “completely focused” on responding to consumer needs. In November, the supermarket unveiled its redesigned plan, promising to put “high quality, great value food wherever and however customers want to shop with us,” according to the company. The company has been investing heavily in delivering increased value and enhancing its price perception after listening to input from “thousands and thousands” of customers. On a call with the press this morning, Roberts said, “All we do is rooted in doing a better job for customers and we’re completely focused on listening and responding to their needs”.
“The value for money of our customers was never more important as we look forward.” After launching the plan, Sainsbury has invested in price decreases for central products such as beef, fish and poultry. As a result, the store says that sales volume on such items has increased by 15%. Sainsbury’s has also expanded its price lock service to over 2,500 lines and unveiled its ‘ “Sainsbury’s Quality, Aldi Price Match’ platform in February, which aims to offer high-quality food at prices comparable to its German competitor.” [Aldi Price Match] is focused on customer feedback that not only want the high value for money, but also the standard of Sainsbury to be seen. The customers – particularly secondary customers – have responded well to Roberts’s price match platform, says Sainsbury. Around 80% of revenue in meat, fish, poultry, dairy and production is covered by the scheme.
Roberts claimed that Sainsbury’s price index increased by almost 300 basis points against Aldi in total to 900 basis points only in the main commodity sectors. Also, in February the tagline ‘Live Well for Less’ was dropped and replaced by ‘Helping everybody eat better’ Sainsbury. The supermarket claims that the message reflects their commitment to safe, nutritious and affordable foodstuffs. When you look at YouGov’s BrandIndex tool, since early November, Sainsbury’s perception of its worth has risen from 11.8 to 14.8. However, it is in the centre of the business rankings and Aldi ranks 53.1. “It’s clearly early, but I’m pleased about progress and excited about what’s going on,” Roberts added. While value expectations were improving and sales of this kind grew as much as 8.1%, Sainsbury posted a pre-tax loss of £261 million for one year, combined with the costs of securing Covid’s store and closing 170 standalone Argos stores. In the year up to 6 March, online represented 17 % of food sales from 8 % in 2020. Argos’ total revenues have increased by 11%, with online sales that by 68% over the same time last year.
When Roberts became Chief Executive Officer of Sainsbury in June 2020 and replaced Mike Coupe, he vowed to “listen to clients more. “The promotion of CEO Mark Given to the Board was one of his first changes. We will adjust and adapt so that we can always fulfil their needs,” said Roberts. “I look forward to hear directly from people what you want from us.” Robert added.
