Sainsbury's | Verdict Company Briefing

Sainsbury's has performed well in its 2012/13 year to date and we expect this performance to be sustained into the New Year with growth of 7.7% year-on-year. A major driving force behind this growth is the retailer's focus on expansion in northern England and Scotland where it is underrepresented. Non-food represents a significant portion of this with food growth more challenging.

• Plan your expansion strategy by understanding how and where Sainsbury's has increased its store portfolio, and the impact this has had on densities.
• Benchmark your performance in food & grocery with detailed key performance indicators across sales and space data for Sainsbury's.
• Justify and inform development of private label ranges in clothing by uncovering Sainsbury's activity in this area and the impact on sales.
• Compare your allocation of clothing retail space with Sainsbury's by uncovering Verdict's data on the space dedicated to over 30 product categories.
• Benchmark Sainsbury's performance in clothing by using Verdict's proprietary sales data for womenswear, menswear, childrenswear and accessories.

Sainsbury's is seeking to innovate in value while maintaining values. Its new tagline Live Well for Less builds on the value message of the Feed your family for £50.00 campaign and supports Brand Match. Sainsbury's hopes to change shopper perception of its price positioning, challenging the belief that it is more expensive than Asda or Tesco.

Sponsorship of the Paralympics was a coup for Justin King as the hype of the Olympics carried over to the second games and most events sold out. The sponsorship was not drowned out by competitors as it would have been had it taken a role in sponsoring the Olympic games and the brand was strengthened by the link.

While Sainsbury’s clothing presence is increasing, through rolling out its proposition across its store portfolio and broadening its offer, a comprehensive online presence would have a positive impact on sales and extend its reach even further, particularly to areas where it only has smaller stores which are unable to stock clothing.

• How will Sainsbury's food & grocery sales grow in 2013, and what impact will this have on market share?
• What are Sainsbury's plans for expansion over the coming years, and how will this contribute to sales growth?
• How have Sainsbury's clothing sales and densities developed and how does Verdict see this changing? How does it allocate its space between categories?
• What is Sainsbury's share of the womenswear, menswear and childrenswear markets? What is Verdict's value clothing market share prediction for 2012?
• What are Sainsbury's goals around own brand development and celebrity collaborations in clothing and expansion of stores and online?

Table of contents

OVERVIEW
Introduction
Summary
Serious threat to Tesco and Asda;
Innovates in value while maintaining values …
… Brand Match provides instant appeal;
Space expansion relatively cannibalisation-proof;
Click & collect provides growth;
Needs to launch clothing offer online;
Opportunities to expand Gok Wan collaborative collection.

SAINSBURY'S
Verdict outlook
Recent key events
Management changes
Ditches wi-fi trial instore
Paralympics sponsorship strengthens retail brand – as does David Beckham
Enhancing new channels for entertainment sales
Acquires 18 TOTAL stations
Closes Fresh Kitchen store
Opens its first pharmacy in a hospital
Rolls out Brand Match …
… and vouchers at till are an improvement on Asda's and Tesco's offers
Innovates in value while maintaining values
Launches mobile shopping for non-food
Extends reach of click & collect
Instore kiosks boost non-food reach
Proposition
Financials
Expansion feeds sales
Current trading
Space
Surpasses 1,000 stores in 2011/12
Allocation
Food & Grocery
Verdict outlook
Recent key events
Customer profile
Sector performance
Sales mix
Market shares
Space allocation
Clothing
Verdict outlook
Recent key events
Sector performance
Market shares
Space

METHODOLOGYVERDICT COMPANY BRIEFING
(Untitled section)
Market size calculation
Sales density calculation
Further reading
Ask the analyst
Disclaimer

TABLES
Table: Sainsbury's company information 2012
Table: Sainsbury's retail proposition 2012
Table: Sainsbury's UK key operating statistics 2008–13
Table: Sainsbury's trading record 2003–13e
Table: Sainsbury's UK store portfolio 2003-13
Table: Sainsbury's space allocation 2010 and 2012
Table: Sainsbury's estimated sales mix 2012
Table: Sainsbury's food & grocery and non-food space allocation % 2010 & 2012
Table: Sainsbury's food & grocery and non-food space allocation (cont'd) 2010 & 2012
Table: Sainsbury's clothing sector sales to March 2007e–12e
Table: Sainsbury's clothing growth rates 2007e–12e
Table: Sainsbury's clothing market share breakdowns 2007–12e
Table: Sainsbury's clothing space allocation 2011

FIGURES
Figure: Sainsbury's fascia 2012
Figure: Sainsbury's Fresh Kitchen 2011
Figure: Sainsbury's UK sales and growth to March 2008–13e
Figure: Sainsbury's UK operating profit to March 2007–12
Figure: Sainsbury's Live Well For Less site 2012
Figure: Visitor share 2008–12
Figure: Visitor demographic 2012
Figure: Sainsbury's food & grocery sales (inc VAT) in calendar years 2008 – 13e
Figure: Sainsbury's food & grocery sales per sq ft for calendar years ex VAT 2008e–13e
Figure: Sainsbury's share of total market held by food & grocery retailers 2008 to 2013e
Figure: Sainsbury's share of market in food & grocery products 2008–13e
Figure: Sainsbury's food & grocery and non-food space breakdown 2010 & 2012
Figure: Sainsbury's food & grocery and non-food space % point change 2012 on 2010
Figure: Gok for TU 2012
Figure: Sainsbury's clothing sales mix 2012
Figure: Sainsbury's clothing sales to March 2007e–12e
Figure: Sainsbury's clothing sales per sq ft to March 2007e–12e
Figure: Sainsbury's women's, men's & children's clothing and accessories shares 2007–12e
Figure: Sainsbury's value clothing market shares 2007–12e
Figure: Sainsbury's clothing space breakdown 2010 and 2011

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