Sainsbury decreases sales revenue

Sainsbury decreases their prices

Sainsbury is the third largest supermarket chain in the United Kingdom, with a supermarket sector of 16.4%. The supermarket chain was founded in 1869, Holborn, London, United Kingdom. In the latest update of the 1^st of October 2014, are these Sainsbury supermarkets located at 1,254 different locations in the UK.

The latest update of their sales revenue has concluded that it is falling rapidly and therefore changes Sainsbury´s plan for opening new stores in 2015.

Sainsbury took a charge of 287 million pounds because there are some sites that cant be changed or developed anymore. Half a year ago did the firm report a loss of tax of 290 million pounds.

After 10 years, is it the first time that Sainsbury is facing a deflation, which was caused by the changing shopping habits of the customers last year. Including the fall of sales have Sainsbury’s shares decreased by 5%. Of having these large profit lost and market share lost, will the development of 40 new supermarket stores across the UK not continue.

09.01.15 rapid fall of their market shares

Sainsbury lost some of their market shares to rivals such as giant Asda and discounters as Lidl and Aldi. As part of Sainsbury Strategy have they decided to reduce spending and probability.  This strategy will reduce the capital expenditure of the amount between 500 million and 550 million pounds each year in the upcoming three years. Lets hope for the best.

Also the emotion full christmas advert didn't
help! Worst Christmas sale since 2004

As seen does the topic Sainsbury scope around the business Management syllabus, in the aspects of market share, strategies and their ad hoc research. In terms of the ad hoc research would it include their research about where to locate the 40 new stores, which development has been paused now because of the decreasing sales. Furthermore are the units of market share and strategies very clear showing, which objectives they use.