Our business and its markets
J Sainsbury plc consists of Sainsbury's - a chain of 504 supermarkets and 319 convenience stores and Sainsbury's Bank.
Sainsbury's Supermarkets is the UK's longest standing major food retailing chain, having opened its first store in 1869. The Sainsbury's brand is built upon a heritage of providing customers with healthy, safe, fresh and tasty food. Today it differentiates itself by offering a broad range of great quality products at fair prices with particular emphasis on fresh food, a strong ethical approach to business and continuous leadership and innovation. Products are improved and developed to ensure the company leads in terms of the ingredients used and integrity of sourcing. A large Sainsbury's store offers around 30,000 products and an increasing number of stores also offer complementary non-food products and services. 147 stores also operate an internet-based home delivery shopping service. Sainsbury's Bank is jointly owned by J Sainsbury plc and HBOS. With access to 16.5 million Sainsbury's customers each week, operating costs are low allowing it to offer excellent value products with extra benefits, delivered in a simple and accessible way.
| Market share by region |
2008 % |
2007 % |
|---|---|---|
| Scotland | 6.1 | 6.1 |
| North East | 8.5 | 7.7 |
| Lancashire | 9.5 | 9.3 |
| Yorkshire | 10.6 | 9.2 |
| Midlands | 15.5 | 15.8 |
| Wales & West | 9.5 | 9.8 |
| East England | 14.3 | 14.5 |
| London | 24.8 | 24.4 |
| South | 19.1 | 20.5 |
| South West | 13.8 | 15.3 |
| Northern Ireland | 16.1 | 15.2 |
- The Institute of Grocery Distribution (IGD) most up to date information available.
- The IGD's mid-case scenario forecast most up to date information available.
- Measured by TNS.
The UK grocery retail market
The UK grocery retailing market was valued at £123.5 billion in 2005/061 and is forecast to grow at an average annual increase of 2.8 per cent to £141.5 billion by 20112. Over the past year, Sainsbury's strengthened its overall market share position to over 14.8 per cent although the market can also be divided a number of different ways. Excluding non-food, Sainsbury's has the number two position in the market.
Sainsbury's growth will be affected by general market issues such as the impact of regulatory and planning regimes on store development and economic factors such as the level of household disposable income. However, Sainsbury's strategy is aligned with factors such as customers' preferences for the products they buy. A range of own label products offer a range with universal customer appeal and the company monitors prices on a weekly basis to ensure it maintains its competitive price position. The company is well positioned to anticipate and meet the increasing focus on fresh, healthy, quality foods. The development of Sainsbury's complementary non-food offer addresses its customers' desire to buy a greater range of non-food products along with their weekly grocery shop and the continued development of its convenience stores also takes into account of the faster pace of people's lifestyles and the trend towards more frequent top-up shopping trips.
Products in a large Sainsbury's store
Customers each week
Total market share
Source: TNS
