Try Something New Today

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Try Something New Today

• Mike Coupe
• Trading Director

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Today

• Big trends
• What does it mean for us
• What does it mean for you

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Big Trends
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More single people
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50 of eating occasions now occur with only one
person
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Value for money
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59 of Taste the Difference customers buy Basics
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Value for time
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Average preparation time1980 60
minutes2004 19 minutes
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Health
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obese adults 1993 14.82004 22.5
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63 of UK consumers have changed their behaviour
in the past 12 months in an attempt to become
healthier
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Indulgence
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Over 50 of new products are indulgent
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Customers demand quality, innovation, imagination
and increasingly provenance
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ParadoxHealthvsIndulgence
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Health By Day
pm
am
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Health By Week
Sun
Mon
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What does it mean for us
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Our Goal
At Sainsburys we will deliver an ever improving
quality shopping experience for our customers
with great product at fair prices. We will
exceed customer expectations for healthy, safe,
fresh and tasty food making their lives easier
every day.
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Supermarket sales are planned to increase by
2.5bn over 3 years

• Convenience 400m
• Grocery 1.4bn
• GM 700m

2.5bn
Excludes petrol and Sainsburys Bank
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• Value for money
• Health
• Indulgence and innovation

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Value for money
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Pricing

• Will maintain competitive price position
• Key lines
• Key categories
• Will invest strategically
• Will improve price projection

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Our Customers

• Do expect price parity on KVIs/commodities
• Will pay premium for quality
• Want price reassurance

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Ways to Save
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Credit for Value
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Health
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Wheel of Health
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Indulgence and innovation
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Try
Out of 30,000 products customers typically buy
150
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The Score So Far

• 1,000 lower prices since Jan 2006 (11,000 last
  year)
• 14m to 16m customers
• Gaps down by 75
• Sales

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LFL Sales
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Top Categories

• Clothing 45.0
• Fruit 9.4
• Dairy 9.2
• Bakery 8.0
• Home and Toys 7.5

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The Score So Far

• CSI 7.3
• 1,000 lower prices since Jan 2006
• 14m to 16m customers
• Gaps down by 75
• Sales
• Market Share

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Market Share
Tesco 30.8
Tesco 29.6
Asda 16.4
A 16.3
JS 16.0
JS 15.8
Morrisons 11.2
Morrisons 12.1
March 06
March 05
March 04
Source TNS (Total Till Roll) 12 w/e Data -
Share of Total Grocers/Non Grocers
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What does it mean for you
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Drive the trends
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Convenience
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Convenience

• Smaller packs
• No/easy preparation
• On the go

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Value

• Price vs quality
• Customers will pay for quality

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Health

• Low fat
• Brown
• Fibre
• Grains/seeds
• Labels

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Indulgence

• Quality ingredients
• Add value
• Ethnic
• Naughty but nice
• Flex in day/week

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So

• Drive the trends
• Be flexible
• Differentiate or die