SBXL’S CSI response to Asda and Sainsbury’s fall in sales

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SBXL’S CSI response to Asda and Sainsbury’s fall in sales

Earlier this week Asda declared a decrease of 1.6% in sales since the last quarter and Sainsbury’s reported a £290 million half year loss. It has been suggested that supermarkets have finally come to pressure from competitor Discounters (Aldi and Lidl). In fact, Asda’s own chief executive Andy Clarke agrees “We have more to do on the discounters”.

October 2014 data from SBXL’s Continuous Shopper Insights revealed that although there was no apparent shift from Supermarket shoppers moving to Discounters for their main shop, there was a clear 5% increase in the number of Supermarket shoppers who are also visiting Discounters throughout the month (data from October 2014 compared to the last quarter).

When looking at shopper satisfaction, Supermarket shoppers currently feel more satisfied when they are shopping in Supermarkets compared to when they are shopping in Discounters. When thinking about finances, Supermarket shoppers are gradually becoming more optimistic about grocery prices (12% drop in the number of shoppers who now expect grocery prices to increase in the next year).

Supermarket retailers must not only focus on competing with Discounters by providing shoppers with the perception of low-priced items. But they must also focus on keeping their shoppers satisfied by offering them the full shopping experience including more experiential shopping scenarios, engaging product displays, less overall store uniformity and more occasions based category solutions: Initiatives that currently Discounters do not offer to their shoppers.