Blog: Sainsbury's faces fresh challenges after strong year
Dean Best | 8 May 2012
Sainsbury's, the UK's third-largest grocer, will tomorrow (9 May) report its annual financial results. Of the UK's largest food retailers, Sainsbury's has been one of the better performers in recent months but, as ever in the country's fiercely competitive market, it faces a new round of challenges over the next 12 months.
Initiatives including the Brand Match price-comparison scheme have enabled Sainsbury's to drive sales over the last year, while rivals like Tesco, and more recently Morrisons, have stuttered.
In March, Sainsbury's reported a 2.1% increase in like-for-like sales for the year to 17 March. Tomorrow, Sainsbury's is expected to report an increase in annual pre-tax profits of around 5%, a slowdown from the 9% increase it filed last year, an indication perhaps of the cost of competing in the UK grocery sector and also the expansion of its store network over the last year. However, Sainsbury's has won praise from industry watchers. Shore Capital analyst Clive Black says he believes Sainsbury's "has cranked out a very good performance" over the last 12 months.
Nevertheless, as ever in the UK's fiercely competitive market, Sainsbury's faces a fresh set of challenges, including Tesco's plans to revitalise its UK business and, interestingly, from Waitrose. Last week, Waitrose announced an extension of its own price-comparison initiative against Tesco, which as well as targeting the UK's largest retailer, could also lure some shoppers away from Sainsbury's.
The thoughts of Sainsbury's chief executive Justin King on these issues and more (including the Government's expected announcement tomorrow of an adjudicator to monitor dealings between retailers and suppliers) will be worth hearing.
Since Theresa May took over as UK Prime Minister in the wake of the country's referendum vote to quit the European Union, she and her ministers have been at pains not to divulge their negotiating posi...
Greenpeace's long-running campaign against UK tuna brand John West, owned by seafood giant Thai Union, is now directing its fire against Sainsbury's....
The Obama administration appears to have conceded the landmark Trans-Pacific Partnership (TPP) trade deal will not be pushed through in the lame-duck session of Congress before Donald Trump is inaugur...
- Unilever 2016 investor day - the top takeaways
- Have food promotions reached tipping point?
- Mondelez goes beyond certified cocoa - analysis
- What Premier CEO Gavin Darby thinks about Brexit
- How Tyson's new CEO plans to grow the meat group
- Nestle unveils process to cut sugar by 40%
- Putin 'wants embargo to run as long as possible'
- Unilever sets new margin target with help from ZBB
- Unilever focuses on "value" of spreads arm
- McCormick to buy flavours business Enrico Giotti