Supermarkets have long been recognised by farmers and campaigners as a danger to community life and good food, but during the last four or five years, with an ever-deepening farming crisis and food scare after food scare, supermarkets have come under even more intense scrutiny from the public and eventually even the government, with its Competition Commission report, which was released in late 2000. Sainsbury's, as Britain's second largest supermarket chain, has been criticised for its links with government and related promotion of genetic engineering, excessive transportation, promoting intensive farming, paying producers low prices, and destroying small businesses, among other corporate crimes.
Sainsbury’s was founded in 1869 and today operates over 1,106 supermarkets and convenience stores and employs around 157,000 colleagues. We put our customers at the heart of everything we do and have invested in our stores, our colleagues and our channels to deliver the best possible shopping experience. Our strong culture and values are part of our identity and integral to our success.
PESTLE OF SAINSBURY’S
Political factors
The political factors in the United Kingdom have a great influence on the performance of Sainsbury. Currently in UK, the government debts and the consumer debts are very high. This impacts the customer attitudes and therefore business conditions experience great pressure. Sainsbury has to not only operate in these market conditions but also has to develop their business continually. Although the political factors are not favorable, Sainsbury has been able to sustain a steady growth due to its long heritage of offering great product quality at competitive prices.
Economic factors
Economic factors play a vital role in any industry. These factors affect demand, costs, prices and profitability. In the light of the economic slowdown, growing unemployment and inflation in food prices are the 2 important elements of economic factor that