Retail analyst, Tarlok Teji comments on Sainsbury’s half year profits seeing a rise of 9%
Sainsbury’s record of consistent growth over 35 quarters speaks for itself. It’s not surprising that they have overtaken Asda. Mike Coupe Director responsible for Trading is ex ASDA as is Roger Burnley Director of Supply Chain and Justin King. Asda is only competing on price and that is attracting customers from Morrisons whereas the Sainsbury customer is more discerning. Price may be important but so are many other aspects of the shopping experience like availability, promotions, loyalty benefits (Nectar points) and convenience. Grocery retailing is about knowing your customer and giving them what they want. Sainsbury is doing this better than Tesco right now.
The real win for Sainsbury over Tesco is in the convenience space where there is plenty of growth still available for Sainsbury, there are very few postcodes left for Tesco to go. This catch up with Tesco will continue to sustain Sainsbury whilst Tesco try and put customer service back into its UK operations.