Sainsbury's results look weak at first glance, but are actually pretty strong

Total sales increased 3.3 per cent.

Sainsbury’s has announced that, during the 12 weeks to 08 June 2013,  total sales (inc. VAT ex fuel) increased 3.3 per cent, with LFLs up 0.8 per cent.  While representing the grocer’s weakest LFL performance in over three years, when put into context this is another strong update from Sainsbury’s. LFL growth has been delivered against tough comparatives – with the same period in 2012 coinciding with the Jubilee – and, more importantly, against wider market trends, with the grocer continuing to outperform key rivals: Morrisons and Tesco. Investment in its well balanced brand proposition continues to have strong traction among hard-pressed British consumers in a polarised market.

Sainsbury’s is getting a number of things very right. Most notable has been investment into own-label architecture, which has afforded it authority to flex its offer in accordance to broadening consumer demands and capabilities. Indeed, both its premium Taste the Difference and mid-tier by Sainsbury’s sub-brands achieved strong growth during this period. This private label investment has been complemented strongly by clever, targeted promotional activity, with its Brand Match scheme being supported by more creative campaigns such as ‘Feed Your Family’ and targeted promotions such through Nectar and via coupon-at-till.  Collectively, this well-aligned own label and promotional activity is somewhat insulating Sainsbury’s in a climate where consumer loyalty is fickle and the hard discounters are excelling.

At the same time, Sainsbury’s continues to display pro-activity in capitalising on opportunities specific to the business and wider trends in the grocery market.  A focus on convenience and online, as well boosting sales in the short term is leaving the business strongly positioned for the next decade. Elsewhere, its non-food offer is relatively immature compared to its supermarket competitors; sales here continue to grow at more than twice the rate of food, highlighting the future scope for growth here.

When viewed in context, despite more subdued LFL growth, this performance can only be seen as providing further evidence in favour of Sainsburys’ current strategic focuses. While Morrisons and Tesco are both investing heavily to turn around their fortunes, the real short-term threat to Sainsbury’s will continue to come from the discounters at one end and Waitrose at the other. In response, it is important that Sainsbury’s continues to be proactive in widening its appeal, strongly leveraging private label and investing in creative promotional investment. 

Photograph: Getty Images

 Managing Director of Conlumino

Getty
Show Hide image

Nigel Farage's exclusive Brexit plan has just been revealed and it's very telling

The panic is over.

If, a week on from Brexit, you're staring at the bottom of your gin bottle and wondering whether you'll ever afford to go on holiday again, then stop worrying. 

There's a plan.

Social media users have been sharing a link to an exclusive reveal of Nigel Farage's plan for the UK departure from the EU. Users are invited to: "View The Brexit Plan that was but together by the Vote Leave campaign, UKIP and Nigel Farage.

Here it is.

Highlighted policy topics include hot potatoes like UK access to the single market, international trade agreements and the rights of EU nationals working in the UK. You just have to click on the red button.

 

Oh. 

It seems the plan might be permanently out of reach. 

Every time you try to click on the red button with your mouse, you'll discover that it leaps away to another part of the page. So far, we haven't heard of anyone who has managed to catch the elusive button and discover the details of the brilliant plan. 

Other plans that have not been very easy to click on this week include: Boris Johnson's plan to be Prime Minister, Jeremy Corbyn's plan to lead a unified Labour opposition and David Cameron's plan to win the EU referendum in the first place.

As it turns out, a week after Brexit we are still waiting for a definitive plan. In the meantime, you can read: