Tesco focuses on enhancing marketing strategies and partnerships to drive expansion

sainsbury's

Sainsbury’s claims the strong performance and reach of Nectar over the last 12 months means it can “punch well above” its weight with its retail media proposition.

The supermarket's CEO, Simon Roberts, mentioned that their success has been boosted by gaining 5 million new digital customers since the launch of Nectar Prices last April, bringing their total to 70 million.

Roberts also stated that the UK's second-largest grocer is committed to continuous innovation in the retail media sector, with a focus on delivering a high return on advertising investment for brand partners.

Sainsbury's is focusing on investing in its "people capabilities" within its media and agency relationships. During a call with investors this morning (25 April), it was mentioned that this is a priority for the company.

In February, Radha Davies, the director of brands, strategy, and creative planning at Sainsbury's, shared with Our Website her hopes for the expansion of the brand's in-house agency. She believes this will contribute to the business's goal of driving effectiveness as part of its £1 billion cost-saving mission.

Sainsbury's is looking to generate at least £100m in additional profit from Nectar360, its retail media offering, over the next three years.

The company is also focusing on improving its digital capabilities to boost online sales for Argos. This includes strengthening SEO efforts and implementing new CRM tools to attract more online visitors.

Market share growth

Sainsbury's saw a rise in underlying profit to £701m in the 52 weeks to 2 March, up by 1.6% from the previous financial year's £690m. This exceeded the company's forecast range of between £670m and £700m.

The grocer, Sainsbury's, says it is winning over customers from discount retailers like Lidl and Aldi. It has even doubled the number of products it matches prices with Aldi. Customers are also starting to upgrade to Sainsbury's higher-end products.

According to the latest data from Kantar, Sainsbury's holds a market share of 15.3%, which increased by 0.4 percentage points in the 12 weeks leading up to 14 April. Among the traditional 'big four' grocers, Sainsbury's experienced the fastest growth during this period. CEO Roberts mentioned, "We are attracting more customers from premium competitors than any other full-range grocers, thanks to our bold and innovative approach."

Total sales for the 12 months ending in March reached £36.3 billion, showing a 3.4% increase compared to the previous year.

These positive results were achieved as a result of a new strategy implemented by the supermarket. In February, they made a decision to focus on enhancing their food offerings. This led to growth in volume sales in each quarter over the past year.

To maintain competitive prices and reduce the impact of inflation on customers, Sainsbury's invested £220 million in the last year and a total of £780 million over the past three years.

Editor's P/S:

Sainsbury's is on a roll with its Nectar loyalty program and retail media offering. The supermarket giant has gained 5 million new digital customers, bringing its total to 70 million, and is seeing strong growth in sales and market share. This is due in part to Sainsbury's commitment to innovation, including the expansion of its in-house agency and investment in its digital capabilities. Sainsbury's is also winning over customers from discount retailers like Lidl and Aldi, and is attracting more customers from premium competitors.

Looking ahead, Sainsbury's is focusing on generating at least £100m in additional profit from Nectar360 over the next three years. The company is also focusing on improving its digital capabilities to boost online sales for Argos. With its strong performance and reach, Sainsbury's is well-positioned to continue to grow its market share and deliver value to its customers.