Retail marketing agency boss lauds Sainsbury's after 12.8% profit increase
The news that Sainsbury’s has made a pre-tax profit of £827 million shows that the company has found the solution to surviving the current economic climate while other brands are failing, one retail agency boss has said.
As Sainsbury’s announces that its pre-tax profits have risen by 12.8%, Gemma Lovelock, UK managing director for retail specialist TLC Marketing Worldwide said that this was due to the brand picking up share from Waitrose as shoppers attempt to ‘downgrade’ and reduce their weekly spend.
"By not overstretching themselves and sticking to the market they know, Sainsbury's are managing to ride out the storm fairly well,” said Lovelock. "Like other supermarkets, they have benefited from the stay-at-home culture that has grown out of the recession.
"People eating and entertaining more at home, which they have been doing for two to three years now, has naturally benefited the supermarkets.”
She continued to applaud the company’s marketing: "Sainsbury's have also been very clever in their marketing strategies. Initiatives such as Feed your family for £50 and Feed your family for a Fiver have caught the imagination, while seasonal activity such as special Valentine's Day offers have also boosted sales. At the same time Jamie Oliver continues to inject personality into the Sainsbury's brand.”
However she concluded by questioning the future of the high street given the ‘soaring’ cost of living, alongside further public sector job cuts and the rise in interest rates.
The profit rise also reported strong sales of non-food items by Sainsbury’s.