Economic

Sainsbury and Its Future Corporate Strategies

The present paper has identified that Sainsbury’s supermarket Ltd is the part of J Sainsbury plc and it is the third largest retail chain supermarket in the UK. It covers almost 16.3 percent share in the UK’s supermarket sector. The parent group has diversified the business by entering property and banking business. It was founded by John James Sainsbury and his wife Mary Ann. The company was founded in the year 1869 in London and attained a rapid growth from the early stage of development. By the end of 1922, it had established itself as the largest grocery retains in the US. With the passage of time, Sainsbury lost its leadership in the grocery retail business and its rival Tesco took over its position in 1995. With the emergence of Asda in the UK market by 2003, Sainsbury has to compromise with the third position in the UK retail market. Sainsbury is listed in London Stock Exchange and it is incorporated in FTSE 100 Index. At present, the company has existence in 502 supermarkets and 290 convenience stores, so the total area under the company’s retail stores are 16,703,000 square feet. As per the last year’s data, the market share of different retain companies in the UK were as follows: Tesco 31.5%, Asda 16.7%, Sainsbury’s 16.4%, Morrisons 11.4%, Waitrose 3.9%, Somerfield 3.7%, Iceland 1.8%. In the last year, the company’s financial condition was adversely affected by the economic recession that engulfed the whole world. The financial report published by the company indicates, its sales reduced to £m 18,911 as compared to the sale to 2008 which was £m 19,287. In the same way, profit for the year reduced by 2.7 percent. Effect of the recession was visible on the company’s Earnings per Share because it reduced from P. 19.1from P. 16.6 in 2008 (J Sainsbury plc, 2009).

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