We were interested to catch Sainsbury's new ad to celebrate their 140th birthday this week. It traces the history of the supermarket through some of the values-led decisions that have defined the business. This week also saw Sainsbury’s posting a better-than-expected 11.3% hike in annual profits to £543 million. Like-for-like sales rose 4.5%, excluding fuel, in the year to March 21.
For many this will be evidence that Sainsbury's combination of recession-friendly campaigns (Jamie Oliver's Feed Your Family for a Fiver, Switch and Save) and high profile commitments to ethical practice (in February it became the first of the big four to ban battery chicken eggs) is proving to be a winning formula.
However, Ian King warned in a piece in Wednesday’s Times that the latest industry switching data suggests that Sainsbury's is losing sales to discounters Aldi and Lidl as well as Asda. We’ll be watching closely to see how the battle for customers plays out over the recession…
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