In these difficult economic times, there is a tendency for food retailers to be all doom and gloom. Yet at Sainsbury’s, we’ve seen that having to think more carefully and thoughtfully about household spending, especially on food, has triggered a set of new, positive shopping behaviours.
Our research shows a deep and widespread change has taken place, with 83% of shoppers having changed their shopping habits in the past year. Whether it’s planning weekly meals, using leftovers or preparing more packed lunches, people are finding a new satisfaction from being savvy shoppers - and enjoying the sense of deferred indulgence that comes from saving up and splashing out on special occasions.
But achieving more for less is not the whole story. People may have cut spending, but they actually care more, meaning quality, integrity and sustainability are increasingly shaping shopping choices. As shoppers consider their decisions more carefully, so their expectations of the goods and services they buy increase.
So how is this manifesting itself on the shop floor? In the past 12 months Sainsbury’s has sold 8.5% more sustainably sourced food with more than £1 in every £10 spent on sustainably labelled products coming from those families on the lowest incomes. While 64% of our customers look out for more special deals and 22% buy more dried, tinned and frozen foods, nearly a quarter are indulging at home, instead of eating out.
“People may have cut spending, but they actually care more”
In many ways, this takes us back to our company origins. As a family grocery business, Sainsbury’s has traditionally been a byword for trust, quality, good service and affordability. Those same values hold true today, but with bigger expectations from our customers, who rely on supermarkets to ‘do the right thing’, whether managing supply chains, contributing to local communities or making our company a great place to work.
These ‘new-fashioned values’ are not a passing phase but represent a fundamental change that’s here to stay. That’s why a year ago we launched our 20x20 Sustainability Plan, a set of time-bound commitments that places British produce, sustainable sourcing and health and wellbeing at the heart of our strategy.
We believe our commercial success will depend on continuing to meet and anticipate our customers’ changing needs. And we need the industry, our suppliers and other experts to help us re-examine our ways of doing things, to help us meet targets such as doubling the amount of British food we sell and increasing the sales of fairly traded products to £1bn.
20x20 chimes perfectly with the move from conspicuous consumption to savvy sustainability. By understanding and responding to customers’ higher expectations, we are better placed to make ourselves a retailer where people love to work and shop.
The successful retailers will be the ones that recognise the changes in values, listen to customers and respond accordingly. With continued pressure on family wallets, ensuring we build values into our value is a key driving force for our business.
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