SWOT analysis of Sainsbury’s

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This article is about a brief SWOT analysis of Sainsbury’s. It examines the strengths and the weaknesses of Sainsbury’s. It also examines the opportunities and the threats facing the company.

SWOT analysis of Sainsbury’s

As mentioned above, it is a brief SWOT analysis of Sainsbury’s. However, it addresses the key issues as follows:

Strengths

Sainsbury’s is one of the oldest super market chains in the UK. It was founded in London in 1869. It is also the 3rd largest supermarket chain in the UK with 15.8% market share (as of December 2017). There are more than 1400 Sainsbury’s grocery stores in the UK which employ more than 150,000 people. The company is also famous for the quality of its products.

Sainsbury’s has, over the years, moved from its core ranges (food and groceries) into areas such as clothing, finance, and energy. The company’s recent takeover of Argos has also increased diversity of its portfolio. Each Sainsbury’s store usually stocks around 30,000 product lines of which approximately 20% are ‘own-label’ ones.

Weaknesses

Many analysts argue that Sainsbury’s prices are higher than those offered for similar products by many of its competitors. However, in response to this criticism, others argue that quality comes with a high price.

In May 2017, Sainsbury’s posted an 8.2 per cent decline in annual profits. This is the result of a number of contributory factors. In fact, retailers in the UK are expected to have difficult times ahead due to uncertainty caused by Brexit.

Opportunities

There are many opportunities for Sainsbury’s for domestic and international expansion. The company can further grow into the UK. Likewise, moving into EU and emerging markets such as China, India, Russia, Turkey, Brazil and others is also worth exploring. Some of these countries are in the list of top 10 largest countries in the world by population. Emerging countries also offer a plenty of labour at a low cost.

Threats

The last element in the SWOT analysis of Sainsbury’s is the threat/s facing the company. Like all other supermarket chains in the UK, Sainsbury’s faces the same threat i.e. fierce competition. There are a number of big players in the UK grocery market e.g. Tesco, ASDA, Morrison’s, Lidl, Aldi etc. Particularly, Aldi and Lidl are changing the rules of the game. These two discounters are providing customers with quality products at a low price.  This is certainly a great threat for Sainsbury’s.

We hope the article on the SWOT analysis of Sainsbury’s has been useful. You may also like reading SWOT analysis of Tesco. If you liked this article, please share it by clicking on the icons below.

The article publication date: 22 January 2018

Further reading/references

Sainsbury’s (2017) About, available at: http://sainsburys.jobs/home/about (accessed 28 December 2017)

Photo credit: www.sainsburys.co.uk

Author: Jo David

Jo David has years of experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality and tourism management.