The spate of extensive price-cutting and media advertising seem to have paid off for Sainsbury’s as it announces its biggest sales increase in four years.
Like-for-like sales on groceries, excluding new stores, rose 5.7 per cent in the quarter ending June 17.
And after losing its position to Tesco as the UK’s biggest supermarket operator in 1995, Sainsbury’s now looks on course to overtake Asda in securing the number two spot.
CEO Justin King said the improvement in performance had come from lowering prices on more than 1,000 products and refurbishing individual stores, as part of his Making Sainsbury’s Great Again recovery plan.
This strategy has also seen the chain open four more of its convenience stores, Sainsbury’s Local, recruit more staff and harness of the appeal of celebrity chef Jamie Oliver in its Try Something New Today campaign.
“We've continued our investment in lower prices, raised quality standards and developed new products, and our sales performance continues to reflect the restored confidence customers now have in our ability to deliver great products at fair prices,” he claimed.
Sainsbury's share of the UK grocery market has risen 0.2 percent to 16 percent in the past year, to a value of £5.5 billion, according to TNS.
Asda has remained at 16.4 percent, while Tesco is still some way ahead, with its 1.4 percent market share increase making it nearly twice as big as those assumed by Sainsbury’s and Asda combined.
