J Sainsbury plc is the parent company of Sainsbury's Supermarkets Ltd, commonly known as Sainsbury's (also Sainsbury and JS), the third largest chain of supermarkets in the United Kingdom. The group also has interests in property and banking.
Sainsbury's was founded in 1869 by John James Sainsbury and his wife Mary Ann (née Staples), in London, England, and grew rapidly during the Victorian era. It grew to become the largest grocery retailer in 1922, pioneered self-service retailing in the UK, and its heyday was during the 1980s. As a result of being complacent during the 1990s, Tesco became the market leader in 1995, and ASDA became the second-largest in 2003, demoting Sainsbury's into third place.
The founding Sainsbury family still retain approximately 15% of J Sainsbury plc shares (as of May 2008), through various trusts. The family sold down their stake from 35% in 2005. The largest family shareholders are Lord Sainsbury of Turville with 5.83% and Lord Sainsbury of Preston Candover, who controls just under 3% of the company, and benefits from 1.6% of the equity included in the above.
Sainsbury's was established as a partnership in 1869 when John James Sainsbury and his wife Mary Ann opened a store at 173 Drury Lane in Holborn, London. They saved £125 to open a shop in the blazing hot summer. He started as a retailer of fresh foods and later expanded into packaged groceries such as tea and sugar. His trading philosophy, as stated on a sign outside his first shop in Islington, was "Quality perfect, prices lower". Sainsbury's took great pride in the cleanliness of its stores, something which it still tries to achieve today, but without the same leading success. John James Sainsbury's aim was to offer the highest quality products, starting with butter, but at affordable prices through owning a larger chain, thus gaining economies of scale.
It was very innovative in that its stores, instead of featuring five own-brand lines like arch-rival Home and Colonial, it offered a wide range of own label lines in comparison. Instead of saw dust floors and wooden counters, Sainsbury's boasted marble counters, mosaic floors and white-tiled walls. Staff even had a uniform of white aprons. Stores started to look similar, so people could recognise them throughout London, a high cast iron 'J. SAINSBURY.' sign featured on every store so their stores could be seen on coaches and omnibuses, and round-the-back deliveries started to add extra convenience and not upset rivals due to Sainsbury's poularity.
In the decade to 1900, the number of Sainsbury's shops trebled.
In 1922 J Sainsbury was incorporated as a private company, as 'J. Sainsbury Limited', when it became the UK's largest grocery group.
By this time each store had six departments: dairy, bacon and hams, poultry and game, cooked meats and fresh meats. Groceries were not introduced until 1903 when John James purchased a grocer's branch at 12 Kingsland High Street, Dalston. Home delivery featured in every store as there were fewer cars in those days. Sites were carefully chosen, with a central position in a parade selected in preference to a corner shop. This allowed a larger display of products, which could be kept cooler in summer, which was important as there was no refrigeration.
By the time John James Sainsbury passed away in 1928, there were 128 shops. His last words were said to be 'Keep the shops well lit', and he was replaced by his eldest son, John Benjamin Sainsbury, who joined the business in 1915.
Alan Sainsbury, the founder's grandson (later Lord Sainsbury of Drury Lane) became joint managing director of Sainsbury's along with his brother Sir Robert Sainsbury in 1938 after their father, John Benjamin Sainsbury, had a minor heart attack.
Following the outbreak of World War II, many of the men that worked for Sainsbury's were called to do National Service and were replaced by women. Given Sainsbury's reputation for quality foods at fair prices, the Second World War were difficult times for Sainsbury's, as with most of its stores trading in the London area, a lot of them got bombed or damaged. Turnover fell to half the pre-war level. Food was rationed, and one particular store in East Grinstead was so badly damaged on Friday 9 July 1943, that it had to move to the local Church as a temporary replacement, whilst a new one was built. This store was not completed until 1951.
During the 1950s and 1960s, with the company now run by Alan Sainsbury, it pioneered self-service supermarkets. On a trip to the United States of America, Alan Sainsbury realised the benefits of self-service stores, and believed the future of Sainsbury's was self-service supermarkets of 10,000 sq ft, with eventually the added bonus of a car park for extra convenience. The first self-service branch opened in Croydon in 1950. One customer was so upset that she threw a basket of goods in Alan Sainsbury's face.
Sainsbury's was a pioneer in the development of own-brand goods; the aim was to offer products that matched the quality of nationally branded goods, but at a lower price. It had a particular emphasis on fresh foods and innovated frozen foods. Despite Sainsbury's wide aisles and spaced-out merchandise (compared to Tesco's 'pile it high and sell it cheap' image), Sainsbury's boasted the highest sales per square foot in the grocery retailing industry. It expanded more cautiously than Tesco, shunning acquisitions, and it never offered trading stamps.
Sainsbury's started to replace its 10,000 sq ft High Street stores with self-service supermarkets above 20,000 sq ft, which were either in out-of-town locations or in regenerated town centres. Sainsbury's policy was to invest in uniform, well-designed stores with a strong emphasis on quality; its slogan was "good food costs less at Sainsbury's". During the 1970s the average size of Sainsbury's stores rose from 10,000 sq ft to around 18,000 sq ft; the first edge-of-town store, with 24,000 sq ft of selling space, was opened in Cambridge in 1974. The last counter service branch closed in 1982. Although these larger stores contained some non-food items, they were not intended to match what Asda had been doing in the north; Sainsbury's focused more single-mindedly on food. To participate in the hypermarket sector, Sainsbury's formed a joint venture, known as SavaCentre, with British Home Stores. The first SavaCentre store was opened in Washington, Tyne and Wear, in 1977; nearly half the space, amounting to some 35,000 sq ft, was devoted to textiles, electrical goods and hardware. As the hypermarket format became more mainstream, with rivals such as Asda and Tesco launching ever-larger stores, it was decided that a separate brand was no longer needed and the stores were converted to the regular Sainsbury's superstore format in 1999. This is in direct contrast to rival firms Tesco and ASDA, which have been rapidly expanding their Tesco Extra and ASDA Wal-Mart Supercentre hypermarket formats in recent years.
Another diversification took place in 1979, when Sainsbury's formed a joint venture with the Belgian retailer, GB-Inno-BM, to set up a chain of do-it-yourself stores under the Homebase name. The plan was to open a DIY store with a supermarket-style layout. Homebase was tripled in size in 1995 with the acquisition of the rival Texas Homecare from the Ladbroke Group plc. Sainsbury's sold the Homebase chain in December 2000 in a two-fold deal worth £969 million. Sales of the chain of stores to venture capitalist Schroder Ventures generated £750 million and sale of 28 development sites, which had been earmarked for future Homebase stores, were sold for £219 million to rival B&Q's parent company, Kingfisher plc. At the time, the chain had 13% of the UK market, behind B&Q and Focus Do It All.
The company's growth was still largely based on food, with only a modest contribution from the SavaCentre business (of which Sainsbury's took full control in 1989). There was, however, diversification outside the UK.
In November 1983 Sainsbury's purchased 21% of Shaw's Supermarkets, the second largest grocery group in the north-east United States. In June 1987, Sainsbury's acquired the rest of the company. The aim was to create a high-quality regional food retailing business based on the same principles as the UK-based operation. Despite good performance by Shaw's, Sainsbury's sold the group on 30 April 2004.
Under the paternalistic leadership of John Davan Sainsbury, it built on its reputation for quality and good value. In 1985 the chairman was able to report that over the preceding ten years profits had grown from £15m to over £168m, a compound annual rise of 30.4% – after allowing for inflation a real annual growth rate of 17.6%. The company was also investing heavily in new technology. During the 1980s the proportion of sales passing through EPOS scanning checkouts rose from 1% to 90%.
At the end of the decade Sainsbury's was widely regarded as one of the world's best-run retailers.
Sainsbury's expanded its operation into Scotland with a store in Darnley opening in January 1992, (the SavaCentre at Cameron Toll in Edinburgh had opened in 1984). In June 1995 Sainsbury's announced its intention to move into the Northern Ireland market, until that point dominated by local companies. Between December 1996 and December 1998 the company opened seven stores. Two others at Sprucefield, Lisburn and Holywood Exchange, Belfast would not open until 2003 due to protracted legal challenges. Sainsbury's move into Northern Ireland was undertaken in a very different way from that of Tesco. While Sainsbury's outlets were all new developments, Tesco (apart from one Tesco Metro) instead purchased existing chains from Associated British Foods (see Tesco Ireland). In January 2008 Sainsbury's brought its number of Northern Ireland supermarkets to 11 with the purchase of two Curley's Supermarkets, which includes those stores' petrol stations and off licences.
In 1991, the group boasted a 12-year record of dividend increases of 20% or more and earnings per share had risen by as much for nearly as long. In the middle of that year the company raised £489m in new equity to fund the expansion of superstores.
John Davan Sainsbury retired in November 1992, and is credited with leading the company to become the UK's largest and most successful supermarket chain.
Mistakes cited include David Sainsbury's famous dismissal of Tesco's loyalty card, the reluctance to move into non-food retailing, the indecision between Sainsbury's quality/price position, "the sometimes brutal treatment of suppliers" which led to suppliers favouring Tesco over Sainsbury's and the unsuccessful John Cleese advertising campaign.
At the end of 1993 it announced price cuts on 300 of its most popular own-label lines. Significantly, this came three months after Tesco had launched its Tesco Value line.
A few months later Sainsbury's announced that margins had fallen, that the pace of new superstore construction would slow down, and that it would write down the value of some of its properties.
In 1994 Sainsbury's announced a new town-centre format, Sainsbury's Central, again a response to Tesco's Metro, which was already established in five locations. The loss of the takeover battle for William Low was a disappointment (like Tesco, Sainsbury's had long been under-represented in Scotland).
It was followed by an unwise response to Tesco's Clubcard. Tesco's initiative was dismissed by David Sainsbury as 'an electronic version of Green Shield Stamps', but the company was soon forced to backtrack, introducing its own Reward Card 18 months later.
A strategic review in 1995 led to the launch of the Sainsbury's Economy label (now Sainsbury's Basics). But again Sainsbury's appeared to be lagging behind its rival. Commentators were drawing invidious comparisons between Leahy's role in Tesco and the lack of a "young Turk" in Sainsbury's.
For much of the 20th century Sainsbury's was the market leader in the UK supermarket sector, but in 1995 it lost its place as the UK's largest grocer to Tesco.
Some new ventures were successful, notably the launch of a retail bank, Sainsbury's Bank, in partnership with Bank of Scotland, and Sainsbury's continued to build up its supermarket business in the US; in addition to Shaw's, Sainsbury's bought a minority stake in another supermarket group, Giant Food, based in Washington DC, although this shareholding was subsequently sold when Ahold of the Netherlands made a full bid for the company.
Sainsbury also trebled the size of its Homebase do-it-yourself business by buying Texas Homecare from Ladbroke for £290m. But these moves did little to allay concern among investors about the grocery business in the UK.
In 1996 the company reported its first fall in profits for 22 years. David Sainsbury announced management changes, involving the appointment of two chief executives, one in charge of UK supermarkets and SavaCentre (Tom Vyner) and the other responsible for Homebase and the US (Dino Adriano). Finally, in 1998, David Sainsbury himself resigned from the company to pursue a career in politics. He was succeeded as non-executive chairman by George Bull, who had been chairman of Diageo, the drinks group, and Adriano was promoted to be group chief executive.
However, this proved to be no more than an interim move. Adriano was moved sideways in 1999 to take charge of strategy, while his deputy, David Bremner, was given responsibility for UK supermarkets.
In March 1997 Sainsbury's Supermarkets Ltd. was established as a separate subsidiary of the group.
In 1999 Sainsbury's acquired an 80.1% share of Egyptian Distribution Group SAE, a retailer in Egypt with 100 stores and 2,000 employees. However poor profitability led to the sale of this share in 2001. On 8 October 1999 the CEO Dino Adriano lost control of the core UK supermarket business, instead assuming responsibility for the rest of the group. David Bremner became head of the UK supermarkets. This was "derided" by the city and described as a "fudge". On 14 January 2000 Sainsbury's reversed this decision by announcing the replacement of Adriano by Sir Peter Davis effective from March.
In 2001 Sainsbury's moved into its current headquarters at Holborn, London. Sainsbury's previously occupied Stamford House and 12 other buildings around Southwark. However the accounting department remained separate at Streatham. The building was designed by architectural firm Foster and Partners and had been developed on the former Mirror Group site for Andersen Consulting (now Accenture), however Sainsbury's acquired the 25 year lease when Accenture pulled out.
Sainsbury's is a founding member of the Nectar loyalty card scheme, which was launched in late 2002 in conjunction with Debenhams, Barclaycard and BP. The Nectar scheme replaced the Sainsbury's Reward Card; accrued points were transferred over. The loyalty scheme is run by a 3rd party company - Loyalty Management UK or LMUK as often abbreviated, collating information on behalf of the partner sponsors.
In 2003 Wm Morrison Supermarkets made an offer for the Safeway group, prompting a bidding war between the major supermarkets. The Trade and Industry Secretary, Patricia Hewitt, referred the various bids to the Competition Commission which reported its findings on 26 September. The Commission found that all bids, with the exception of Morrison's, would "operate against the public interest". As part of the approval Morrison's was to dispose of 53 of the combined group's stores. In May 2004 Sainsbury's announced that it would acquire 14 of these stores, 13 Safeway stores and 1 Morrison's outlet located primarily in the Midlands and the North of England. The first of these new stores opened in August 2004.
At the end of March 2004 Davis was promoted to chairman and was replaced as CEO by Justin King. In June 2004 Davis was forced to quit in the face of an impending shareholder revolt over his salary and bonuses. Investors were angered by a bonus share award of over £2m despite poor company performance. On 19 July 2004 Davis' replacement, Philip Hampton, was appointed as chairman. Hampton has previously worked for British Steel, British Gas, BT and Lloyds TSB.
Justin King joined Sainsbury's in 2004 from Marks and Spencer plc where he was a director with responsibility for its food division and Kings Super Markets, Inc. subsidiary in the United States. Schooled in Solihull and a graduate of the University Of Bath, where he took a business administration degree, King was also previously a managing director at Asda with responsibility for hypermarkets.
King ordered a direct mail campaign to 1 million Sainsbury's customers as part of his 6 month business review asking them what they wanted from the company and where the company could improve. This reaffirmed the commentary of retail analysts - the group was not ensuring that shelves are fully stocked, this due to the failure of the IT systems introduced by Peter Davis. On 19 October 2004 King unveiled the results of the business review and his plans to revive the company's fortunes - in a three year recovery plan entitled 'Making Sainsbury's Great Again'. This was generally well received by both the stock market and the media. Immediate plans included laying off 750 headquarters staff and the recruitment of around 3,000 shop-floor staff to improve the quality of service and the firm's main problem: stock availability. The aim would be to increase sales revenue by £2.5bn by the financial year ending March 2008. Another significant announcement was the halving of the dividend to increase funds available for price cuts and quality.
King hired Lawrence Christensen as supply chain director in 2004. Previously he was an expert in logistics at Safeway, but left following its takeover by Morrisons. Immediate supply chain improvements included the reactivation of two distribution centres. In 2006 Christensen commented on the four automated depots introduced by Davis, saying "not a single day went by without one, if not all of them, breaking down... The systems were flawed. They have to stop for four hours every day for maintenance. But because they were constantly breaking down you would be playing catch up. It was a vicious circle." Christensen said a fundamental mistake was to build four such depots at once, rather than building one which could be thoroughly tested before progressing with the others. At the time of the business review on 19 October 2004, referring to the availability problems, Justin King said "Lawrence hadn't seen anything that he hadn't seen before. He just hadn't seen them all in the same place at the same time". In 2007 Sainsbury's announced a further £12 million investment in its depots to keep pace with sales growth and the removal of the failed automated systems from its depots.
Sainsbury's sold its American subsidiary, Shaw's, to Albertsons in 2004. Also in 2004 Sainsbury's expanded its share of the convenience store market through acquisitions. Bell's Stores, a 54 store chain based in north-east England was acquired in February 2004. Jackson's Stores, a chain of 114 stores based in Yorkshire and the North Midlands, was purchased in August 2004. JB Beaumont, a chain of 6 stores in the East Midlands was acquired in November 2004. SL Shaw Ltd, which owned six stores was acquired on 28 April 2005 for £6 million. On 29 September 2004, Sainsbury's established Sainsbury's Convenience Stores Ltd. to manage its Sainsbury's Local stores and the Bells and Jacksons chains. The latter two are to be rebranded as Sainsbury's Local by March 2008.
Since the launch of King's recovery programme, the company has reported twelve consecutive quarters of sales growth, most recently in January 2008. Early sales increases were credited to solving problems with the company's distribution system. More recent sales improvements have been put down to price cuts and the company's focus on fresh and healthy food.
On 4 April KKR left the consortium to focus on its bid for Alliance Boots. On 5 April the consortium submitted an "indicative offer" of 562p a share to the company's board. After discussions between Sir Philip Hampton and the two largest Sainsbury family shareholders Lord Sainsbury of Turville and Lord Sainsbury of Preston Candover the offer was rejected. On 9 April the indicative offer was raised to 582p a share, however this too was rejected. This meant the consortium could not satisfy its own preconditions for a bid, most importantly 75% shareholder support; the combined Sainsbury family holding at the time was 18%.
Lord Sainsbury of Turville, who then held 7.75% of Sainsbury's, stated that he could see no reason why the Sainsbury's board would even consider opening its books for due diligence for anything less than 600p per share. Lord Sainsbury of Preston Candover, with just under 3%, was more extreme than his cousin, and refused to sell at any price. He believed any offer of that stage of Sainsbury's recovery was likely to undervalue the business, and with private equity having high returns on their investments, saw no reason to sell, given that the current management, led by Justin King, could deliver the extra profit generated for the benefit of existing investors. He claimed the bid 'brought nothing to the business', and that high levels of debt would significantly weaken the company and its competitive position in the long-term, which would have an adverse effect on Sainsbury's stakeholders.
On 11 April the CVC-led consortium abandoned its offer, stating "it became clear the consortium would be unable to make a proposal that would result in a successful offer.
On 4 October 2007 Sainsbury's announced plans to relocate its Store Support Centre from Holborn to Kings Cross in 2011. The new office will be part of a new complex to allow for both cost savings and energy efficiency. These savings will be made through the use of efficient building materials and design, a combined heat and power energy centre and the use of renewable energy sources.
In June 2008 Sainsbury's bought a northern Irish branded store Curley's which had two stores one in Dungannnon and Belfast. The Belfast store will open in 2009 after a refurbishment and expansion. This currently makes 11 Sainsbury's stores in Northern Ireland.
On 18 July BBC News reported that Delta Two had tabled a conditional bid proposal.
The bid was initially believed to be worth 610p a share, but was in fact worth 600p a share, the minimum level the Sainsbury family stated the business was worth. Paul Taylor, the principal of Delta Two, flew David and John Sainsbury to Sardinia to reveal and discuss the potential bid. The bid received a lukewarm response.
The family had reservations about the value of the bid (after another quarter of like-for-like sales growth and a revaluation of the Sainsbury's property portfolio). In addition, they were concerned about splitting J Sainsbury plc into an operating company and a property company which would be distinct, a highly leveraged bid which could weaken Sainsbury's competitive position and the long-term interests of the business and its stakeholders, the investment plan (the strategy pursued by Justin King had greater capital expenditure commitments than the Delta Two plan) and the funding of the pension fund, which was revealed just days before a recommended bid was expected, as an ultimatum.
On 5 November 2007 it was announced Delta Two had abandoned its takeover bid due to the "deterioration of credit markets" and concerns about funding the company's pension scheme. Following the withdrawal of the interest of the QIA, shares in Sainsbury's dropped around 20% (115p) to 440p on the day of this announcement (5 November 2007).
Delta Two have now withdrawn and no takeover bid is expected, despite the City believing it was a 'done deal' during 2007.
|Year end||Sales(£m)||Pre tax profit(£m)||Profit for year(£m)||Basic eps (p)|
|22 March 20081||19,287||479||329||19.1|
|24 March 20071||18,227||477||324||19.2|
|25 March 20061||16,061||104||58 ³||3.8|
|26 March 20051||15,409||15||614||3.5|
|27 March 20041||17,141||610||396||20.7|
|29 March 20031||17,079||667||454||23.7|
|30 March 20021||17,162||571||364||19.1|
|31 March 20011||17,244||437||276||14.5|
|1 April 20001||16,271||509||349||18.3|
|3 April 19992||16,433||888||598||31.4|
|7 March 19981||14,500||719||487||26.1|
|8 March 19971||13,395||609||403||22.0|
|9 March 19961||12,672||712||488||26.8|
|11 March 19951||11,357||809||536||29.8|
|12 March 19941||10,583||369||142||8.0|
|13 March 19931||9,686||733||503||28.5|
|14 March 19921||8,696||628||438||25.7|
|16 March 19911||7,813||518||355||23.6|
|17 March 19901||6,930||451||314||20.8|
It is the third largest supermarket chain in the UK, and places an emphasis on a higher quality grocery offering compared to its other large rivals.
According to Taylor Nelson Sofres rankings published in January 2008, Sainsbury's market share was 16.4% compared to Tesco's 31.5%, ASDA's 16.7% and Morrison's 11.4%.
According to CACI, as of 2006, Sainsbury's has market dominance in 8 postcode areas; TQ (Torquay), SN (Swindon), GU (Guildford), RH (Redhill), DA (Dartford), SE (South East London), EN (Enfield) and WV (Wolverhampton).
It is particularly strong in London and the South-East, where it is based, and although it has a national store portfolio, it is biased towards the South-East.
The supermarket chain operates three main store formats; regular Sainsbury's stores ('Main Mission'), Sainsbury's Local and Central (convenience stores and smaller supermarkets in urban locations - 'Mixed Mission') and Sainsbury's 'Main Plus' (hypermarket) stores.
At the end of its 2005/06 financial year Sainsbury's store portfolio was as follows.
|Format||Number||Area (ft²)||Area (m²)||Percentage of space|
Traditionally, Sainsbury's was most present in the areas around London and south-east England. The company acquired the Midlands-based Thoroughgood in the 1930s. Expansion since 1945 has given the company national reach, although the chain is not as represented in Scotland as other chains such as Tesco, and Morrisons (as Safeway dominated Scotland before being taken over by that company). This is partly due to the fact that Sainsbury's missed out on the bidding war for William Low to Tesco in the 1990s.
Since 1999, Sainsbury's stores have received a new look. The old 'J SAINSBURY' fascia, used since 1869, was scrapped and 'Sainsbury's' was used. Sainsbury's stores are more colourful than those of rivals, and stores refurbished post 1999 feature dark blue walls, with bright orange brand wall panels, along with grey shelving and checkouts. Individual counters also have different brightly coloured panels behind them. The new flagship store in Greenwich, South London, was the first to receive this new-look, lending the name 'Greenwich Blue' to describe the in store colour scheme. This format was subsequently rolled out across the entire store estate. Following the introduction of the 'Try something new today' slogan in 2005, stores are refurbished with cream walls, and dark red and dark blue signage, along with cream coloured shelving and checkouts. New purple coloured staff uniforms are being introduced to all stores over the next year.
However, some stores have still been under-invested as of 2008, despite a store refurbishment programme since 1999. One such store is in Princess Square, Bracknell, which still features the old 'J SAINSBURY' logo, with lime green and dark brown tiles inside, fashionable in the 1970s.
The core 'Main Mission' store format, which is a typical Sainsbury's supermarket, is between 20,000 sq ft and 48,000 sq ft. The average size of a Sainsbury's supermarket is 34,000 sq ft, the lowest amongst the 'Big Four'. This is because Sainsbury's were criticised for not building larger stores and extending its SavaCentre format in the 1990s. They concentrate on the weekly family shop. Food and non-food are split two thirds and one-third respectively. Typical counters include Food to Go, Fishmonger, Butchers, Delicatessen, Bakery, Salad Bar and Beers, Wines and Spirits.
Both of the above formats trade simply as Sainsbury's, so you cannot tell which format you are in unless you know what to look for. Customers will notice a larger product range, particularly non-food in a 'Main Plus' store.
The 'Mixed Mission' format incorporates the Sainsbury's Central and Sainsbury's Local formats. Sainsbury's Central stores are between 7,000 sq ft and 20,000 sq ft, which is a mini supermarket, and Sainsbury's Local stores are between 2,000 sq ft and 6,000 sq ft in size, carrying a top-up shop and grab-and-go offer. Sainsbury's Local stores have different decoration to the other two formats - 'Main Mission' and 'Main Plus'.
The Sainsbury's Local stores on Shell petrol forecourts are set to close down due to being unprofitable.
Sainsbury's Central will eventually be phased out, to be replaced by the Sainsbury's 'Main Mission' format. This was announced in 2004, but several Sainsbury's Central stores, including Holborn and Reading, have yet to be refurbished and converted.
Sainsbury's initially retained the strong Bells and Jacksons brands. For example, refurbished stores were called Sainsbury's at Bells or Sainsbury's at Jacksons. These were effectively Sainsbury's Local stores with a revised fascia, retaining some features of the former local chain. Unrefurbished stores retained the original brand and logo, but still offered Sainsbury's own brand products, pricing and some point of sale, without accepting Nectar cards. The old websites were also retained with some Sainsbury's branding.
This was an experimental format and on 4 May 2007 it was announced that all stores would be re branded as Sainsbury's Local, with the management teams of the smaller stores integrated into Sainsbury's own teams. The Jacksons Stores website now auto forwards to the Sainsbury's one. The Bell's Stores website no longer exists at all.
Each till receipt includes a two-line footer showing the store number (prefixed with 'S'), transaction number (prefixed with '#') on the day of purchase, cashier number (prefixed with 'C'), checkout number (prefixed with 'R') and time and date.
Sainsbury's currently uses the "Try something new today" slogan which was launched in an effort to make consumers venture into purchasing more varied goods. The television adverts are also often accompanied by The Polyphonic Spree's Light & Day. Over the years, Sainsbury's has used many slogans:
In 2008 they created a shopping incentive by showing that, when shopping at Sainsbury's, you can feed your family for only five pounds. The incentive, called "Feed your family for a fiver", with the flagship of "Meatballs 'n' More" has been advertised on British television channels, with Jamie Oliver cooking for a family.
A large store typically stocks around 50,000 lines of which around 20% are "own-label" goods. These own-brand lines include:
It was previously called 'Sainsbury's to You' and 'Sainsbury's entertain You', and prior to that it was called 'Sainsbury's Orderline'.
+ Tamworth is a former Safeway distribution centre. It was purchased from Morrisons in order to take on the ambient store deliveries from the Hams Hall RDC, during the rip out of the automated ambient process. When the changes have been completed at Hams Hall and the ambient deliveries return from Tamworth, the new depot at Tamworth will operate the distribution function of the TU line.
The work started on ripping out the automated ambient processes at Hams Hall in May 2008 and is due for completion around September 2008 when the ambient processes will return to Hams Hall and will be completed in a traditional manual process.
During the changes Hams Hall continues to process Chill and Produce deliveries; the chill process is to continue using an automated system and produce will remain as a manual process.
A similar rip out of the ambient process happened at Waltham Point during 2007 when the ambient processes were transferred to Buntingford.
++ Sherburn is a former Somerfield depot bought in 2008 and is intended to be a national DC for the Local Stores network it will also take over the work of the Maltby Depot which will close.
Sainsbury's also has a depot called Buntingford. This depot is usually not in operation; however Sainsbury's still own the site and continue to use the depot at busy times, particularly at Christmas when Waltham Point gets very busy. Buntingford is ready for use as an emergency depot for the rest of the year.
Sainsbury's Supply Chain is in the process of changes involving other depots the details of which will be added after the colleague consultation process has been completed.
Originally Sainsbury's ran its own distribution network. However after an industrial dispute with their drivers in the 1970s, and with the intention of streamlining and consolidation, much of the distribution is now contracted out - to distribution specialists such as TDG, DHL/Exel Distribution and NFT.
Sainsbury's drivers are employed on flexi-contracts. The staff split is 20% Agency Staff and 80% Sainsbury's staff.