Sainsbury’s has overtaken Walmart's Asda as the number two of British supermarket chains, now only chasing Tesco. It was also the only one from the big four able to capture additional market share and resist competition from discounters like Aldi and Lidl.
Own brands and online excel
The supermarket chain managed a 16.5 billion euro turnover in the 28 weeks prior to October 2013, a 4.4 % increase compared to the same period last year. On a like-for-like basis, sales increased 1.4 %. Especially its own brands performed well, doubling the pace of the other brand products.
Online sales are also on the rise, with a 15 % increase. On a yearly basis, Sainsbury’s now draws 1 billion pounds (1.2 billion euro) from its online component, equalling the entire Belgian e-commerce turnover.
These results push the concern from a 16.7 to a 16.8 % market share, according to research organization Kantar. All of its competitors (being Tesco, Asda and WM Morrison) have lost ground, meaning Sainsbury’s is the only one of the big four moving up.
Restructuring plan pushes profits 9 % higher
Financially, the company has a 510 million euro gross profit (+9 %). It not only increased its turnover, but thanks to a restructuring plan, Sainsbury’s managed to save 65 million euro in the first half of its fiscal year.
Sainsbury’s has opened 1 new supermarket and 50 additional convenience stores in the first half of this fiscal year. The latter saw a turnover increase of 20 %.
(translated by Gary Peeters)