Both John Lewis and Sainsbury’s have highlighted many operational concerns being felt by most other brands in the supermarket sector; price volatility on imports, deflation on food prices, and a changing landscape with how consumers purchase their food.
Some basic background however first about each firm.
Sainsbury’s has 597 supermarkets, and 707 convenience stores seeing 24.5 million transactions weekly through their various store types within that. They employ 161,000 people, have 23 depots, 2,000 food suppliers and 1,000 non-food suppliers.
John Lewis is separated into two distinct brands; John Lewis and Waitrose. Both chains see around 17.4 million customers a year - far below what Sainsbury's sees weekly.
From that they are separated into 3 store types, with John
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John Lewis is also increasing their available revenue sources to keep up with a rapidly changing market.
Sainsbury’s in 2015 has revamped their business direction, and seeks to try and become the most trusted retailers, with high worker and shopper satisfaction. They are seeking to do this by offering fairer prices and improving the quality of their food, to entice customers from different stores back to theirs, to increase their sales performance.
Furthermore, they are entering the convenience sector to claw back sales lost their. With 707 convenience stores, it’s clear they are focusing heavily on the rise of convenience shopping.
John Lewis has not really tried to enter the convenience market, as they only have 62 stores that could be classed as convenience stores. However, they are relying more on the increasing market share online shopping has taken. John Lewis from 2014, saw a 41% increase in capacity for online-sales, showing their willingness to adapt. Sainsbury’s is still developing their online