unit 29 m1

RATIONALE FOR LOCATION
SIZE NO. EMPLOYEES
BRANCHES
TURNOVER
TARGET MARKET
MERCHANDISE
1 Sainsbury
Needs to be near a car park for easy access to customers. Best location near a well-populated area, lots of customers will come round to shop with their families.
Over 150,000 people
1,016 (16 March 2013)
£22.294 billion
Households and families online groceries, clothing in store bakery, butcher, fishmonger, delicatessen and pizza counters, a cafe, TU clothing, general merchandise, mobile phone shop, petrol station and online picking department.
2 Topman
Needs to be in the town centre where all the customers shop
Topman is owned by arcadia. They employ over 31.200 staff
Over 175
£1.8 billion
Men
Men’s Fashion clothing textiles
3 Bookers
Needs to have a car park for access for big vans, deliveries and access for big company vehicles
Approximately 9,658 employees as at 29 March 2013
172 branches in the UK

£89.6 million
Catering businesses independent convenience stores, grocers, pubs and restaurants
Wholesale goods

4 Card Factory
Needs to be situated where there are a lot of shoppers, preferably in a market
4,500
288 stores
£168m
People who wish to buy card for special occasions
Greeting cards
Birthday cards
Gifts

SWOT analysis for Sainsbury
Strengths
Sainsbury has a number of strengths. It is ranked as one of the big four supermarket chains in the whole of the UK. It has a very large leadership team who are committed to work and provide the best for the company. Sainsbury’s’ also have an outstanding branding and advertising strategy. The company is very successful in the trade as they have over 350 convenience stores across the UK.
Weaknesses
Although Sainsbury’s has a big success rate they also have weaknesses. They have a high number of rising food prices over the world which has impacted on their business due to the fact they are selling at higher prices than their competitors. This also has an impact because they will fall behind in their retail sector.
Opportunities
Sainsbury could provide self-checkouts which will boost up their income because shopping will be quicker and faster for much needed customers. Also Sainsbury could open up 24 hours a day 7 days a week which will be an advantage for them and their potential new and existing customers because they will be able to shop around at different times. Example when a family has run out of some food late at night they could pop in to buy a few goods which will be beneficial to them and they would also go back there because it is a useful supermarket for them. Another opportunity for Sainsbury’s is to get feedback from their customers and to reply to them via sms or email; just like their rivals is doing, Tesco. Also another opportunity for Sainsbury’s is to invest in the IT department which provides vouchers and loyalty points to their regular customers.
Threats
Sainsbury has a big threat against its competitors because there are lots of other big companies in the field such as Tesco, Morrisons and Asda. One of the biggest threats at the moment is that their rival Tesco is provided club card points and loyalty cards to customers whom tracks what customers are buying and gives them discounts and vouchers to use in the future which they could use to buy those same products again.