UK: Sainsbury's profits slump
Profits at UK supermarket chain Sainsbury's have slumped by nearly a quarter, in yet another setback to the firm's fight to keep up with rivals Tesco and Asda. All attention is now on Sainsbury's new chief executive, Sir Peter Davis. He hopes that a fresh strategy with a strong streak of e-commerce can revive the grocery chain, which has been perceived as being less innovative than its competiters. Sir Peter is betting on further expansion, promising to create 5,000 jobs this year alone. The jobs will be created both through the construction of 13 new stores and the build up of the group's e-commerce activities, Sir Peter said. Hoping to mimic Tesco's success, Sir Peter wants to speed up the roll-out of Sainsbury's internet-based home shopping services, dubbed "Sainsbury's To You". The service is currently available from nine stores only, but will be expanded to cover 60% of customers by the end of this year. The retailer also wants to set up a new food and drink web portal called Taste For Life, to be launched in June. The competition will not be fought over prices, though. Sir Peter said Sainsbury's would "always be price competitive", but would not enter into a price war.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-food gives you the widest food market coverage.
Paid just-food members have unlimited access to all our exclusive content - including 17 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Dean Best, editor of just-food
- US food next wave on display at Winter Fancy Food
- How General Mills plans to grow - CAGNY
- Comment: Meal kits in US - don't believe the hype
- Wessanen eyes growth in "resurgent" organic market
- Does Kraft Heinz want to swallow Unilever whole?
- Unilever launches operational review
- Kerry operating earnings strengthen on slow sales
- Glanbia focuses on nutrition with Irish dairy spin
- Kerry's Scanlon to replace McCarthy as CEO
- Mondelez launches savoury snacks brand Vea