Financial Analysis of Sainsbury's Performance
Introduction
J Sainsbury plc was founded in 1869 in Drury Lane by John James and Mary Ann Sainsbury, and is one of the oldest supermarkets in the United Kingdom. Its current company structure comprises of a chain of 547 supermarkets, 343 convenience stores and the recent addition of Sainsbury’s Pharmacy and Sainsbury’s Bank (which is a joint venture with the Lloyd’s bank group). Currently their customer profile consists of approximately 19 million customers’ each week and a surplus of an estimated 2,000 suppliers. Its employee structure consists of approximately 150,000 individuals and it is still expanding. The current Chief Executive Justin King believes the Sainsbury’s success and profitability can be accredited by “... our values underpin our goal to provide health, safe, fresh and tasty food at fair prices. These values are at the heart of our business; they determine our priorities and guide us in ensuring that we conduct ourselves in an honest, ethical and sustainable manner...”.
Sainsbury’s supermarkets pride themselves with placing customer interests primarily as illustrated by the four general goals:
• Best quality of food with customer health in mind
• Sourcing food and its components with integrity
• Environmentally friendly
• Community growth and development
In addition the company has set aside three main objectives to ensure it adheres to bearing in mind its rapid expansion:
1. Excellent food at fair prices
2. Accelerating the expansion of the growth of the complementary non-food range and services for example clothing
3. Rapid an effective expansion within the United Kingdom for example: the introduction of online grocery shopping.
J Sainsbury plc supermarkets have won five coveted awards this past year within the supermarket field: Leaders in HR and people management, Supermarket of the year, Official partner of the London 2012 Paralympics games, Leader in quality, Green to the Core (by consumer focus for their customer
J Sainsbury plc was founded in 1869 in Drury Lane by John James and Mary Ann Sainsbury, and is one of the oldest supermarkets in the United Kingdom. Its current company structure comprises of a chain of 547 supermarkets, 343 convenience stores and the recent addition of Sainsbury’s Pharmacy and Sainsbury’s Bank (which is a joint venture with the Lloyd’s bank group). Currently their customer profile consists of approximately 19 million customers’ each week and a surplus of an estimated 2,000 suppliers. Its employee structure consists of approximately 150,000 individuals and it is still expanding. The current Chief Executive Justin King believes the Sainsbury’s success and profitability can be accredited by “... our values underpin our goal to provide health, safe, fresh and tasty food at fair prices. These values are at the heart of our business; they determine our priorities and guide us in ensuring that we conduct ourselves in an honest, ethical and sustainable manner...”.
Sainsbury’s supermarkets pride themselves with placing customer interests primarily as illustrated by the four general goals:
• Best quality of food with customer health in mind
• Sourcing food and its components with integrity
• Environmentally friendly
• Community growth and development
In addition the company has set aside three main objectives to ensure it adheres to bearing in mind its rapid expansion:
1. Excellent food at fair prices
2. Accelerating the expansion of the growth of the complementary non-food range and services for example clothing
3. Rapid an effective expansion within the United Kingdom for example: the introduction of online grocery shopping.
J Sainsbury plc supermarkets have won five coveted awards this past year within the supermarket field: Leaders in HR and people management, Supermarket of the year, Official partner of the London 2012 Paralympics games, Leader in quality, Green to the Core (by consumer focus for their customer