GREAT BRITISH BRANDS: Sainsbury's - the Firm That Brought Supermarkets to Britain Has Faced Stiff Competition and Lower Profits, but Things Are Looking Up

Marketing, August 1, 2002 | Go to article overview

GREAT BRITISH BRANDS: Sainsbury's - the Firm That Brought Supermarkets to Britain Has Faced Stiff Competition and Lower Profits, but Things Are Looking Up


With supermarkets now an integral part of modern life, it's not surprising that Sainsbury's is one of the biggest of all British brands.

After all, it invented the modern supermarket, opening the UK's first self-service store in Croydon in 1950.

It was a revolutionary concept at the time because post-war consumers were still stuck in their pre-war ways, used to personal service in specialist stores. The idea of pushing a trolley around was alien to them, as was the freedom to choose between brands. With food rationing only lifted in 1954, people were simply not used to behaving like 'consumers'. That changed in the 1950s and Sainsbury's introduction of supermarkets was an important factor in the process.

Sainsbury's began in 1899, when John James and Mary Ann Sainsbury opened a shop selling milk, butter and eggs in Drury Lane, London. The firm remained a family business until flotation in 1973, by which time Sainsbury's was the UK's leading supermarket chain, with more than 250 stores. It was also at the forefront of another significant retail trend as it opened its first out-of-town stores.

In the early 1970s, it was also one of the first British supermarkets to develop own-label lines. By 1980,many of the packaged goods brand owners featured in these pages were beginning to feel the heat from this successful strategy as Sainsbury's revealed that nearly half its customers bought own-label goods. Now 55% of Sainsbury's sales are own-brand products such as Be Good to Yourself.

By the late 1980s, Sainsbury's was on a roll and its profits were at an all-time high, increasing 20% per year between 1987 and 1992.

Offering the best quality at the best value is a core brand value Sainsbury's has carefully built for years. It first coined its famous 'Good Food Costs Less' slogan in 1959. Its advertising has consistently reinforced this message, including its 1993 'Famous Recipes' campaign, in which celebrities were shown making their favourite dishes from Sainsbury's ingredients.

Dawn French, Selina Scott, Catherine Zeta-Jones and Dennis Healey were among the famous names recruited and the campaign proved so successful that Sainsbury's often sold out of items features in the ads the next day. Despite the success of its ads, Sainsbury's commanding lead, and its profitability, began to slip away in the early 1990s as Tesco gained ground.

Its response to the Tesco onslaught was chaotic, with David Sainsbury famously dismissing his rival's 1995 launch of a customer loyalty scheme as 'electronic green shield stamps'. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

GREAT BRITISH BRANDS: Sainsbury's - the Firm That Brought Supermarkets to Britain Has Faced Stiff Competition and Lower Profits, but Things Are Looking Up
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.