Sainsbury's Case Study

Aim

The aim of this report is to consider the principles of business at Sainsbury’s whilst also recognizing common factors in successful organizations.

Introduction

It has been revealed that Sainsbury’s is one of the UK’s largest retailers in the United Kingdom and was founded in 1869 by a man called John James Sainsbury and his wife Mary Ann Sainsbury at 173 Drury Lane in Holborn, London, England. It has been incorporated as a private company since 1922. Sainsbury’s pioneered self-service in the United Kingdom during the 1950s and 1960s and now is the largest chain of supermarkets in the United Kingdom. It operates over 1106 supermarkets and convenience stores and employs around 157000 colleagues. Sainsbury’s owns two property joint ventures with Land Securities Group Plc and The British Land Company Plc. It also operates a bank which provides a number of quality products such as insurances, credit cards, savings, loans and etc. Customers are offered great products at fair prices while consistently being rewarded with Nectar points for choosing Sainsbury’s for their finance and shopping needs. Besides, Online groceries and non-food sales are operated by Sainsbury’s as well. As a consequence, customers can conveniently pick up non-food items ordered online at a store whenever they want. Customers are also able to be entertained by movies, books, music, games, and other entertainment products through Sainsbury’s Entertainments. Apart from that, through Sainsbury’s Energy, competitive and value propositions through a dedicated team of energy experts in-store are offered. Hence, customers benefit from having a relationship with the energy supplier in-store, online and over the phone whilst collecting Nectar points on some Sainsbury’...

... middle of paper ...

...ience stores, a full online grocery and general merchandise offer are offered by Sainsbury’s. Therefore, if customers shop all three of the channels provided by Sainsbury’s, their total spend will be more than double that of the average supermarket-only shopper. Whilst developing new businesses, Sainsbury’s always invest beyond their core since it is an important part of their long-term strategy and objective for their future. The reasons of Sainsbury’s having growing space and creating property value as its objectives are to have new supermarkets, add space to existing stores through extensions, and have new convenience stores. The purpose of Sainsbury’s having compelling general merchandise and clothing as one of its objectives is to prove that it can be highly successful, with sales of general merchandise and clothing growing at more than twice the rate of food.