Sainsbury’s has emerged as one of the grocery sector’s big winners this summer after its sponsorship of the Paralympics and “brand match” price promise resonated with shoppers.
Chief executive Justin King also said its own-label ranges had delivered a renewed growth spurt as customers shop around for value and increasingly top up their weekly shop in its fast-growing convenience stores. King said “people had battened down the hatches in June and July after splashing out on the Jubilee”. But he added that they re-emerged ahead of the Olympics and Paralympics and during the “more normal weather” of the last eight weeks.
While he declined to be drawn on the boost Sainsbury’s got from sponsoring the Paralympics, he said this event and the Olympics “definitely helped the public’s mood”. The grocer, which has 1066 stores, grew its like-for-like sales by 1.9% over the 16 weeks to September 29, which was ahead of City expectations and beat Tesco’s 0.1% rise over a different period.
King cited the contribution of the “brand match” price initiative, which gives customers a money-off coupon at the till if the branded products in their basket would have been cheaper at Tesco and Asda, to its outperformance. He said: “I think there is a marked difference between how we use data and how we use vouchers.”
He added that he was “disappointed” that the Advertising Standards Authority had this week asked the company to change its initial adverts to make it clear the price promise applies to spends of more than £20, which it has done.
