Sainsbury's on turnaround blitz |
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Sun, 08 May 2005 18:00
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Who says the action has slowed down on High Street? Lead players like Tesco, Sainsbury’s and Asda are maintaining the momentum with new tactics every other day to lure shoppers no matter how tight their belts.
Market research group Taylor Nelson Sofres (TN)S said Sainsbury’s appeared to have caught up with rival Wal-Mart owned Asda. In the 12 weeks to April 24, Sainsbury’s increased its market share from last year’s 15.5% to 15.9%.
| Correspondingly, Asda suffered a loss in market share, from 16.6 per cent to 16.5 per cent. If both Asda and Sainsbury’s come neck-and-neck in the race, they still have to contend with number one Tesco, the High Street giant with a current market share of 29.8% (up from previous 27.5%).
The retail leader last month reported a record full-year underlying pretax profit of £2.03 billion. They are also reported to have invested £67 million into price-slashing in an effort to stay ahead in the race.
Sainsbury’s appears determined enough for a turnaround after posting record half yearly losses last November (the first time they reported losses in their 135 year history). Indeed, the store is faithfully following a turnaround programme in a bid aiming to reclaim its former status as the number one chain. Chief executive Justin King has succeeded in halting the downslide as is indicated by the year-on-year comparison.
Meanwhile, the branded stores chain Morrisons also lost market share despite some gains by its Morrisons fascia; its £3 billion-format Safeway made losses dragging it down some notches. Their market share (combined) is down from last year’s (over the same period of 12 weeks to April 24) 14.4% to 12.2 per cent.
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