Supply chain problems at Sainsbury have led to repeated prosecution by trading standards, chief executive Justin King admitted at the company agm on Monday.
Most recently, the company was fined £18,000 last month after it was discovered that price promotions in three Lambeth Sainsbury Local stores were not being applied and customers were overcharged as a result.
The company said packs marked for promotions in its larger stores were mistakenly delivered to Local stores where tills were not programmed for the promotions.
Although this problem has
landed the company in court several times in the last few years, said King, systems inadequacies that caused overcharging had now been rectified. Resolving supply chain difficulties will now be paramount said King who told shareholders: “While focusing on systems we have not been focusing on customers.”
With systems changes now complete, Sainsbury can address supply issues.
These included availability, which King admitted had not had adequate investment and left customers frustrated by empty shelves.
“Availability must be the objective - we must take a total chain approach and ensure the entire supply chain is set up for success.”
He also said fewer instore promotions would be offered in favour of “a combination of pricing and quality”, which would mean increasing range and giving customers the quality they demanded at the same time as becoming price competitive.
King said achieving success in non-food was “incredibly important” and admitted this area must also be improved.
King said Sainsbury would differentiate its offer but recognised that it must begin to match its competitors in the price stakes if it was to succeed.
“Our products and quality are a key part of what makes us different - in the past and in the future,” he said
“But we have not kept our eye on the competitive environment or on our customers as much as we should have.”
Amy Balchin
Most recently, the company was fined £18,000 last month after it was discovered that price promotions in three Lambeth Sainsbury Local stores were not being applied and customers were overcharged as a result.
The company said packs marked for promotions in its larger stores were mistakenly delivered to Local stores where tills were not programmed for the promotions.
Although this problem has
landed the company in court several times in the last few years, said King, systems inadequacies that caused overcharging had now been rectified. Resolving supply chain difficulties will now be paramount said King who told shareholders: “While focusing on systems we have not been focusing on customers.”
With systems changes now complete, Sainsbury can address supply issues.
These included availability, which King admitted had not had adequate investment and left customers frustrated by empty shelves.
“Availability must be the objective - we must take a total chain approach and ensure the entire supply chain is set up for success.”
He also said fewer instore promotions would be offered in favour of “a combination of pricing and quality”, which would mean increasing range and giving customers the quality they demanded at the same time as becoming price competitive.
King said achieving success in non-food was “incredibly important” and admitted this area must also be improved.
King said Sainsbury would differentiate its offer but recognised that it must begin to match its competitors in the price stakes if it was to succeed.
“Our products and quality are a key part of what makes us different - in the past and in the future,” he said
“But we have not kept our eye on the competitive environment or on our customers as much as we should have.”
Amy Balchin
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