The Competition Of Sainsbury

Sainsbury’s have 157,000 employees and the amount of money that they profits per year is £25,632 million as 23 million customers come per week which demonstrates that it is a profit maker. The total sale of Sainsbury’s was +4.3% (including VAT, excluding fuel) in 2013, whereas the “like-to-like” sale was +1.8% (including VAT, excluding fuel) in 2013.

Sainsburys is currently the second largest chain of supermarkets within the UK, with a current supermarket sector share of 16.9%. Sainsbury’s was founded in 1869 and today operates in over 1,200 supermarket and convenience stores, and has over 161,000 employees. We will be looking at a number of areas internally and externally and see how they are effectively or not effectively performing.

Sainsbury's has two major shareholders and the latest figures on 5th July 2017 show that: Qatar Holding LLC holds majority of the shares with 21.99% and Credit Suisse AG holding 11.4% in shares.

The purpose of Sainsbury’s is that they are trying to make as much profit as possible, as they are competing with other supermarkets and be the number one UK’s supermarket, and this will allow them to expand on their business.

Sainsbury’s goal is to reflect they commitment to meeting customers’ needs; however, they want to shop food, clothing, general merchandise and services also they vision is to be trusted retailer where people love to work and shop. They strategy plan is to know they consumers better than anyone else, be there for them whenever they need them also offering great products and services at fair prices. They colleagues make the difference; they value makes them different.

Owners- Sainsbury’s have shareholders in the form of stakeholders. Owners are one of the most important stakeholders. They want their business to expand and earn as much profit as they can. Owners aim to make money and raise the business they have shares in. They buy and sell their shares in order to see their share of profit increasing.

J Sainsbury plc (Sainsbury) is a retail chain based in the UK. Sainsbury is engaged in grocery retailing through its supermarkets and convenience stores principally in the UK. The company operates its business through three divisions, namely, Retailing, Financial Services and Property Investment. Sainsbury serves its customers through a chain of 537 supermarkets and 335 convenience stores under the brand Sainsburys, and financial services via Sainsburys Bank. Sainsbury offers around 30,000 food and non-food products and services. The company is headquartered in London, the UK J Sainsbury plc Key Recent Developments Mar 11, 2010: Sainsbury launches first bakery college in the UK Mar 08, 2010: Sainsbury to add

To make further comment we need to investigate further by looking at industry, competitors and economy. There may be other factors causing this ratio to decrease such as a general decline gross margin profit in retail sector affecting all companies, high inflation causing less demand, increasing competition etc. We should do further investigation to make further comment.

Sainsbury has developed different supply chain channels to manage the complexity faced due to different store formats such as country town, Sainsbury local. Sainsbury believes in continues improvement and aims to achieve it in many different ways. Sainsbury recognise the importance of its people who plays a major role in delivering excellent business. The logistic staffs of Sainsbury tend to work in flexible and well maintained environment. One of the collaboration of Sainsbury is to focus on the demands of the consumers and maintain a healthy relationship with the suppliers and other partners. Above all Sainsbury is committed in reducing the impact of its operation towards the environment (J. Sainsbury Plc-b, 2002).

Strength-The main strength of Sainsbury is that they are the oldest existing supermarket chain in the UK. Hence, the brand name of Sainsbury is widely recognized and building a loyal customer base in their region. Outstanding quality and competitive price for products are unique resources that other competitors could not imitate.

The UK supermarket industry resembles an oligopolistic industry, with several characteristics. Oligopolistic markets tend to be characterised by high concentration ratios, barriers to entry and…Since the turn of the century, the industry has been scrutinised by both the Office of Fair Trading and has been referred to the Competition Commission on two occasions. (Seely, 2012)

For strategic analysis part, we used PESTLE and Porter’s 5 forces for external analysis; and SWOT and Value Chain for internal analysis.

This report provides a view on operations of SAINSBURY’S , the third largest supermarket chain across United Kingdom. SAINSBURY’S , in spite of being the longest standing retail chain has been facing stiff competition from rivals like TESCO , MORRISONS. The competitors seemed to have developed at a faster pace since SAINSBURY’S has been through a difficult time in recent years and TESCO is now twice the size in terms of turnover.

The purpose of this report is to compare and discuss the performance of Sainsbury and Morrison’s, check their performance as a food retailers and evaluate them on CORE framework analysis. The framework comprises four stages: context, overview, ratios and evaluation together with external and internal analysis which will help evaluate and compare two retail companies.

Sainsbury 's is the second largest cable of supermarkets in the United Kingdom with a share of the UK supermarket area of 16.8%. Originated in 1869 by John James Sainsbury with a shop in Drury Lane, London, the company developed the biggest grocery dealer in 1922, recognized self-service trading in the UK, and taken its peak through the 1980s. In 1995, Tesco passed Sainsbury 's to become the marketplace lead, and Asda developed the second leading in 2003, relegating Sainsbury 's to third place. The holding company, J