Sainsbury’s to work harder on own-label lines

Supermarket group Sainsbury’s has said that it will be focused towards expansion of its cheapest own-label lines this year while cash-strapped shoppers grapple with a cost-of-living crisis that shows little sign of abating.

Britons are increasingly turning to supermarkets’ own-label products, which are usually cheaper than branded products, to help manage spending.

In the four weeks to April 16 own-label sales in the UK were up 13.5 per cent year-on-year with the very cheapest value own-label lines up 46 per cent, according to market researcher Kantar. Branded sales were up 4.4 per cent over the same period.

“You’ll see us do more work on entry price points over the coming weeks and months, it’s an area we’re really focused on,” Sainsbury’s CEO Simon Roberts told reporters after the group reported 2022-23 results.

As well as buying more own-brand products to save cash, customers were purchasing more frozen items, shopping more often and choosing to eat out less.

“Customers are saving wherever they can…But also they are trading up and celebrating at home more often too,” said Roberts, highlighting a record number of customers over the Easter trading period.

He said the group’s Argos general merchandise business had seen strong sales in consumer electronics but weakness in home furniture.

Sainsbury’s has reported that its total retail sales, including fuel, for fiscal year (FY) 2022/23 grew 5.2 per cent compared with FY21/22. In the 52 weeks that ended 4 March 2023, the retailer’s sales, excluding fuel, increased by 2 per cent.

Driven by inflation and improved market share performance, Sainsbury’s grocery sales rose by 3 per cent over the year.

Reports quoted Roberts as saying that life is tough for so many households right now, which is why the supermarket is absolutely determined to battle inflation for our customers.

“Our focus on value has never been greater and we have spent over £560m keeping our prices low over the last two years. As a result, we are now the best value compared to our competitors that we have been in many years and we are delivering improved market share performance in Sainsbury’s and Argos.

“We are two years into our plan to put food back at the heart of Sainsbury’s and have focused our efforts on reducing costs right across the business, which has enabled us to make the right decisions for our colleagues and customers.