Supermarkets Sainsbury’s and Morrisons had news on their multichannel strategies as they reported to investors this week. Here are the highlights.
The Sainsbury’s figures and strategy
Sainsbury’s [IRDX RSBR] this week reported on a financial year in which it bought Argos [IRDX RARG], and its revenue figures rose accordingly. Group sales, excluding VAT but including fuel, hit £26.2bn in the year to March 11, 11.6% up on the same time last year, thanks to the acquisition. Like-for-like sales at Sainsbury’s, however, fell by 0.6% on the previous year. Pre-tax profits of £503m were 8.2% down on the £548m it reported last year. Sainsbury’s said its strategy was to create “a leading multichannel food, general merchandise, clothing and financial services retailer”. It sees online, where grocery sales were up by more than 8%, and convenience, which grew by more than 6%, as key channels in that. But it still expects the supermarket to be the key channel for sales: by year end it had 605 supermarkets and 806 convenience stores. Some 53% of general merchandise sales were made online. The pillars of a strategy first set out in November 2014 in the face of changing shopper behaviour are around knowing customers better, enabling them to shop wherever and whenever, prices, values,
Chief executive Mike Coupe said: “This has been a pivotal year and we have made significant progress delivering and accelerating our strategy. Sainsbury’s Group offers customers market-leading product choice, value and convenience, whenever and wherever they shop with us.
“Food is the core of our business and we are committed to helping customers live well for less. Our food business remains resilient in a challenging market and we continue to innovate in quality and to invest in price. We are also…