As Costcutter-owner Bestway takes a stake, Sainsbury’s finds itself holding a challenging middle-market position between the discounters at one end, and Waitrose and Marks & Spencer at the other. Retail Week’s Prospect analysts explore five ways Sainsbury’s will differentiate itself in a fiercely competitive market.
In an intensely competitive sector, Sainsbury’s has come under mounting pressure from discounters Aldi and Lidl, as well as major supermarket rivals Tesco, Asda and Morrisons as each hones its value credentials and aims to differentiate to appeal to increasingly cash-strapped consumers.
Not only has Sainsbury’s arguably traditionally trailed a step behind grocery behemoth Tesco when it comes to implementing new ideas, but its mid-market position between Aldi and Lidl at the value-end of the spectrum, and Waitrose and Marks & Spencer at the premium end, puts it in the squeezed-middle territory.
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