The battle between two of Britain’s biggest supermarkets has never been fiercer. Sainsbury’s issued some solid results for the first 3 months of this year. But Tesco didn’t fair so well in the same period. So what’s Sainsbury’s been doing right lately and why does Tesco seem to be struggling? The IBTIMES Business Desk has been talking to a retail analyst.
The Sainsbury’s Live Well For Less ad. Matt Piner from Colunmino told IBTIMES he reckons that marketing and advertising like these - speaking straight to shoppers and is part of their winning formula. Tugging at people’s purse strings, when it comes to being able to provide healthy meals for their families on a tight budget. In-store sales for Quarter 1 were up 1.4% (excluding fuel). And it had its best Christmas ever.
In contrast Tesco’s sales dipped by 1.5% (excluding VAT & Petrol) for the same quarter and, at Christmas, they issued a profits warning. Focussing on opening new stores across the UK, instead of zhuzhing up existing ones, didn’t seem to hit the mark; the CEO walked out in March and now they’ve now switched to upgrading stores. Piner reckons some customers saw Tesco stores as being outdated and felt they’d lost touch with customers.
With a recent refresh of their 20-year-old ‘Value’ own brand range, to ‘Everyday Value’, it seems like Tesco’s has taken up that challenge to keep a very tight grip on its position as the biggest force to be reckoned with in the British grocery market.
Written & Presented by Marverine Cole