Discovering shoppers are “actually responding” to digital advertising and marketing, Sainsbury’s is celebrating its standing because the UK’s second largest on-line grocery retailer after growing market share.
Sainsbury’s has credited a robust efficiency by manufacturers together with Argos, Habitat and Tu for improved gross sales and income, because the retailer introduced a renewed digital push to take care of development in its on-line gross sales.
Talking stay from the Cop26 convention in Glasgow, of which Sainsbury’s is a key sponsor, the retailer reported underlying revenue earlier than tax of £371m for the 28 weeks to 18 September, a 23% enhance on the primary half of final yr. Statutory revenue earlier than tax was £541m.
General gross sales have been up by 5.3%, with a 62.7% enhance in gas gross sales after a interval that noticed widespread panic shopping for. Grocery gross sales have been up by 0.8% in comparison with the identical interval final yr and by 9.1% in comparison with the pre-pandemic first half of 2019. Normal merchandise gross sales have been 5.8% beneath the excessive lockdown ranges of final yr, however 1.1% forward of 2019 figures.
The group has maintained an elevated degree of digital gross sales after shopper behaviour modified throughout the Covid-19 pandemic. Some 39% of the grocery store’s retail gross sales have been digital throughout the first half, accounting for earnings of £5.8bn. Consequently the retailer has elevated its concentrate on digital advertising and marketing messages, based on Sainsbury’s chief government Simon Roberts.
We have now 8.2 million digital Nectar customers now. That’s a completely important platform to have the ability to talk immediately and in a extra personalised approach.
Simon Roberts, Sainsbury’s
“We discover that prospects actually reply to digital advertising and marketing by way of each worth and innovation, in order that has been a robust platform for us and now we have continued to develop it as extra prospects have shopped on-line,” he advised Advertising Week at a press briefing in the present day (4 November).
The retailer plans to take care of and drive additional development in digital gross sales, after being the largest winner of market share within the on-line grocery sector throughout the reporting interval. Roberts confirmed Sainsbury’s now has a 21.3% share of the UK on-line grocery market by worth, crushed solely by Tesco.
“One of many issues that occurred throughout the pandemic clearly is we noticed grocery on-line prospects considerably develop and that’s actually one thing we need to proceed to drive,” he stated. “We’re doing much more practical and influencer communication than we have been a yr in the past, and once more we’re getting a extremely good response as we try this.”
Argos, which Roberts described as an “80%-plus” digital enterprise, is likewise driving its digital interactions with prospects. Regardless of the concentrate on digital, Argos shall be launching a standard Christmas advert on the finish of this week, Roberts confirmed.
The facility of information
Like different main retailers, together with Tesco and Boots, Sainsbury’s is growing the usage of its loyalty scheme knowledge to drive extra focused and efficient digital advertising and marketing.
The group launched its Nectar Costs scheme in September, providing digital Nectar prospects reductions on frequently-purchased Sainsbury’s merchandise.
“We have now 8.2 million digital Nectar customers now. That’s a completely important platform to have the ability to talk immediately and in a extra personalised approach with these prospects. The launch of Nectar Costs three or 4 weeks in the past was a extremely clear indication of our dedication to present prospects personalised worth and affords,” stated Roberts.
Sainsbury’s hails Aldi worth match success as worth push pays off
Sainsbury’s insists its Meals First technique, designed to place meals again on the coronary heart of the grocery store model, has landed nicely, with Aldi worth matching affords serving to to seize market share from all rivals within the sector. The grocery store additionally claims to have invested in service, enhancing each buyer expertise and the effectivity of its on-line provide.
The trouble of workers over the past yr is to be recognised with the closure of shops on Boxing Day this yr to present them extra time with their households.
Sainsbury’s expects to report underlying revenue earlier than tax of not less than £660m for the total yr to March 2022.