Sainsbury’s Ramps Up Investment in Marketing for Future Expansion

Category

Marketing

Read Time

2 min

Published

29 April, 2024

Over the past 12 months, supermarket chain Sainsbury’s has enjoyed substantial growth, with an underlying profit of £701m for the year ending 2 March.

This marks a 1.6% increase from the previous year’s £690m and exceeds the supermarket giant’s projections of £670m to £700m.

Simon Roberts, Chief Executive at Sainsbury’s highlighted that this success is somewhat due to attracting 5 million new digital customers since launching Nectar Prices last April. The growth in digital customers has strengthened Nectar’s reach and performance, thereby improving Sainsbury’s retail media proposition.

Roberts explained that Sainsbury’s is keen to keep evolving by concentrating on delivering a high return on advertising spend for its brand clients. He also mentioned that the store is boosting its “people capabilities” to build better media and agency relationships.

According to Radha Davies, Director of Brands, Strategy and Creative Planning at Sainsbury’s, growing the company’s in-house agency is expected to drive further effectiveness. Over the next three years, Sainsbury’s plans to yield at least £100m in additional profit from its Nectar360 retail media proposition.

The supermarket is also focussing on its digital activity, including SEO and new CRM capabilities, to increase online growth for Argos.

Market share data from Kantar shows that Sainsbury’s has increased its market share to 15.3% in the 12 weeks to 14 April. It was the fastest-growing of the traditional ‘big four’ during that period. Roberts added that Sainsbury’s is capturing more volume from premium competitors than all other full-choice grocers by continuing to try new bold ideas.

Sainsbury’s recorded total sales of £36.3bn for the 12 months ending in March, marking a 3.4% year-on-year increase. This growth follows a strategic shift announced in February focusing on improving its food offerings, with volume sales growing each quarter last year.

Over the past year, Sainsbury’s invested £220m, and £780m over the past three years, to keep prices low for its customers.

The supermarket is also gaining market share from budget retailers such as Lidl with Roberts adding that Sainsbury’s has doubled the number of products it price matches against these stores.

Speaking of Lidl, we’ve been writing about them too!

Check out their legal dispute with Tesco here.

Hi, I'm Amy, Content Strategist at Canny. In my day-to-day role, I'm responsible for creating content that gets you noticed and makes you stand out from the competition. Naturally, I love writing and creating engaging copy that brings your brand to life.

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