Wednesday, May 14, 2008

Sainsburys beware

The UK supermarket Sainsburys has reported a 28% increase in its profits this year. Now, I know they are one of the big nasty supermarket chains but I'm quite pleased about this. I was, for many years a Tesco customer partly out of laziness and partly because of the clubcard. But I got fed up of sub-standard fruit and veg and awful meat (see my post from almost a year ago). So I switched to Sainsburys. I travelled the extra few miles to their store and paid a few pence extra and got less of a reward for my loyalty (nectar points aren't as valuable as clubcard points). It was worth it for the better food. And I'm delighted and surprised that lots of other people have made the switch in a time when food prices have been rising fast. Sainsburys concentrate mainly on food but they have decided to reinvest the profits in the non-food side of the business. Boo. Concentrate on maintaining the quality of your food and you will maintain your profit margins (and your customers). Tesco took their eye off the ball and started selling crap food a year and a half ago so they could concentrate on their USA operations and their non-food lines and look what happened. I said it a year ago for Tesco and I'll repeat it again today; Sainsburys beware.

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