Essay on Sainsbury 's Business Activities.

Essay on Sainsbury 's Business Activities.

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Appendix 9. Sainsbury’s business activities 1971–2013
Sainsbury’s entered a joint venture with British Home Stores in 1971 to create hypermarket style stores under the brand SavaCentre. These stores reverted to the standard Sainsbury’s brand and superstore format in 1999.
It went public very successfully in 1973 and in 1979 developed a further joint venture with Belgian retailer, GB-Inno-BM, setting up a successful chain of DIY stores with a supermarket-style layout under the brand ‘Homebase’. Hombase grew into a very profitable concern and in 1995 acquired ‘Texas Homecare’ tripling in size overnight. Homebase was subsequently sold in 2000 for almost £1billion.
Sainsbury 's acquired a percentage of US based Shaw 's Supermarkets in 1983 and in 1987 completed purchase of the remainder of the business with the aim of creating a high-quality grocery retailing operation focusing on the same values as their core UK business.
In the 1980s and 1990s Sainsbury’s effectively expanded into Scotland and N Ireland – again adopting a policy of new development in favour of acquisition (Tesco’s general preference) raising £489 million in new equity to fund the expansion of its superstores.
1992 saw the beginning of a period of decline for Sainsbury’s with a variety of poor decisions and business moves resulting in a loss of market share to Tesco, who in 1996 overtook them as market leaders.
For the most part Sainsbury’s seemed to be reactive instead of proactive in terms of countering Tesco’s growth and later sector dominance: initially rejecting the Loyalty Card approach before grudgingly adopting the trend in later years; dropping prices in their lower quality ranges in the face of Tesco’s rolling out its new Value ranges and developing a city ...


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...gs that were intended in the medium term.
2008/9 saw steady growth with further store acquisitions from the Co-Operative in Britain and Curley’s in N Ireland.
In 2010 Sainsbury’s announce their intention to move into China. As yet their growth into Asia has been very slow.
From 2011 onwards saw increasing expansion into convenience sector and small format operations.
In 2013 Sainsbury’s bank performed well with post tax profit up 38% and over 1.5 million active accounts. Despite incurring some costs, along with the rest of the sector, in refunding payment protection claims – the business is a key area of projected future growth for the business. Sainsbury’s intend to own the bank outright – buying joint venture partner Lloyd’s remaining shareholding. The move will incur transitional costs but will be beneficial in the long run. (Wikipedia, 2014; J Sainsbury’s 2014)

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