Annual Report home page
Annual Review and Financial Statement 2003
  Previous   Next
Sainsbury's Supermarkets Home > Operating Review > Sainsbury's Supermarkets  
let's talk food
   
  let's talk food
improving our offer
Sainsbury's Supermarkets -
Quality, Choice and Service at Competitive Price
Differentiation in terms of quality, choice and service at competitive price is the focus of our brand. We know our customers want choice including superior ranges and 70 per cent regularly buy our biggest sub-brand, Taste the Difference, made with extra time, care and attention.
 
During the past year we have continued to win important industry awards underlining our product quality such as Fresh Produce Retailer of the Year, Wine Retailer of the Year and the Honest Food Award. We were elected the Soil Association’s ‘Organic Supermarket of the Year’ and source more organic products from the UK than the industry average. We continue to support British producers and overall we source over 90 per cent of fresh foods that can be sourced in the UK from the UK.
 
We match competitors on the price of basic everyday lines and score well in the industry’s most respected basket survey – the Grocer 33. The survey also tracks availability and service and again we achieve consistently high scores as we offer customers a much wider choice of food and grocery products in our stores.
 
In April 2003 we launched a major service initiative, Scan and Pack, creating 10,000 new jobs to significantly improve our checkout service. Early results are encouraging with significant reductions in queue lengths already achieved.
 
Non-food
 
Developing our non-food offer to meet our customer needs is another priority and we have strengthened our specialist team this year. Customers want us to focus on food but also develop non-food ranges the Sainsbury’s way – offering quality and choice at good value prices. Our store portfolio has changed considerably over recent years as we have introduced convenience stores and increased the number of larger stores. We now have 152 stores over 40,000 sq ft. Extensions, format development and new stores all provide additional space for exciting new non-food ranges starting this autumn.
 
We are committed to growing our own health and beauty offer. During the year we introduced Active Naturals, our first major own label health, beauty and household range with products containing at least two natural ingredients. We also successfully tested an enhanced Sainsbury’s offer by increasing our range to 6,000 products and are now adding new own label and international brands. To minimise customer disruption roll-out is being combined with that of the new non-food ranges.
 
Sainsbury’s Supermarkets analysis
2003 2002
Sales 1 £15,301m £14,860m
Underlying operating profit 2 £572m £505m
Number of stores 498 463
Sales area (000 sq ft) 15,199 14,349
Full-time employees 44,700 44,000
Part-time employees 100,700 101,400
 
Includes VAT.
2 Profit before exceptional operating costs.
70 per cent regularly buy our biggest sub-brand, Taste the Difference
 
Photo of product from Sainsbury's Taste the Difference range: Link to www.sainsburys.co.uk
 
Visit www.sainsburys.co.uk

 

Top

Downloads Site map
Previous   Next
Disclaimer   © J Sainsbury plc 2004  
View financial highlights table UK key US key