14 May 2008


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Sainsbury's to accelerate non-food

Sainsbury's

non-food

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Sainsbury's is stepping up the expansion of its non-food range.

By March 2010, the company expects overall sales growth to be split two thirds from food and one third from non-food with half the new space in that same period given to the company's growing non-food offer.

By the end of March 2010, 60 60,000sq ft or larger stores will have over 15,000sq ft of non-food merchandise with TU clothing within 300 stores.

Sainsbury's also plans to increase its non-food share online and has announced a £15m investment in a non-food operation in the first half of the 2010 financial year.

It will provide customers with the choice of a range of Sainsbury's own-brand and branded non-food products.

Within the non-food mix, TU continues to be a star performer.

Sainsbury's reports it is now the 11th largest UK clothing retailer by volume.

Reporting its results for the 52 weeks to 22 March 2008, Sainsbury's said TU sales have grown by around 40% in the past year making TU a £300m brand.

A new 1,700-strong homeware range called TU home was launched in two stores in Sydenham (London) and Oldbury (West Midlands) in April 2008.

According to Sainsbury's this completes its 'good, better, best' range hierarchy in non-food and complements 1,700 home and lifestyle products, such as storage, home office and toys, already in the company's core non-food product range.

This total offer of 3,400 items will be rolled out to additional stores over the next year.

Sainsbury's reported strong Christmas trading in gifts, cards and wrapping – the first range sourced direct by its in-house team.

It also included a number of special buys and 'stunt' deals of large electrical products and Sainsbury's reports it had a particularly strong performance in games, small electrical appliances and new technology such as MP3 players, digital cameras and satellite navigation systems.

More recent product launches within Sainsbury's home and lifestyle offer include a children's cookware range, designed to help encourage children to get cooking, and the expansion of the company's premium homeware range, Different by design.

Sainsbury's said its health and beauty ranges had a good year and 35 stores were refitted with a new look and layout for these products.

The supermarket also increased its promotional programme in this sector to include 'stunt' deals on products such as nappies and the Champneys skincare range saw its third year of consecutive growth with over 2m products being sold.

By Fiona Briggs

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