19th Sep 2005 07:02
Sainsbury(J) PLC19 September 2005 19 September 2005 Sainsbury's launches next stage of recovery to grow sales by £2.5billion Sainsbury's has announced a major change in its communication with its customerswhich will be introduced company-wide. The plans take Sainsbury's into the nextstage of its Making Sainsbury's Great Again recovery programme, which wasoutlined by chief executive Justin King in October 2004. The changes are themost significant in the company's 136-year history and are key to the company'starget to grow sales by £2.5billion by March 2008. The changes will be kick-started by a new advertising campaign which airs with aspecial launch advertisement tonight. A new commercial break has been createdat 10.45pm for the Sainsbury's advert and is a first for ITV. Jamie Oliverremains a key figure in the new campaign which launches the company's new strapline 'Try Something New Today'. This was developed after research showed thatcustomers wanted supermarkets to help them with simple but effective recipeideas. 'Try Something New Today' will spread through all areas of the company'soperation and is being complemented by intensive programmes covering areas suchas colleague communication, leadership training and ways of working fornon-store based colleagues. Sainsbury's chief executive, Justin King, said: "We have spent the last yearmaking improvements to the basics of our operation. We still have a lot to dobehind the scenes but customers are now enjoying a much-improved experience inour stores. " Sainsbury's has reported like-for-like growth in its last two quarters - thefirst positive consecutive growth in two years. "Now is the time to ask peopleto come into our stores and try some of the many new and improved products wehave introduced in recent months, better customer service and availability and amuch more competitive pricing position. The values Sainsbury's first advertisedin the early 1900s, Quality and Value, are being presented to customers in amore modern and meaningful way. It's what customers still want and expect fromSainsbury's" continued Justin King. "The new advertising campaign is only the tip of the iceberg. The announcementmarks a change in how we will serve our customers and the start of acompany-wide training programme equipping every colleague to improve thecustomer experience in store. Changing how we run our business will mean we cancontinue to improve our service to customers and sustain the early improvementswe have already made. Although we have made a lot of progress, significantcultural change is required, particularly at our Holborn office, to deliver ourrecovery plan and ensure that our stores are at the heart of everything we dobecause that is where we serve our customers. "As part of this change over 1,000 managers from stores and central teams,including the Board, are all going through a two-day training course to changethe way we lead the business. Every store colleague will also receive customerservice training by the end of October. We believe this is the biggestcommitment a Sainsbury's Board has made to align every colleague behind a singleaim - in our case to make Sainsbury's great again." The ideas and tips promoted by Jamie Oliver in the company's adverts over thecoming weeks are being sampled by all 153,000 colleagues so they can experiencethem first hand and in turn share their knowledge and ideas with customers. Allmain supermarkets will also be offering customer sampling of new products andideas assisted by Sainsbury's team of food advisors. The new strap line will be brought to life throughout the company featuring oneverything from advertising material, and in store displays to till receipts anddelivery lorries. Store colleagues are working overnight to update the look andfeel of Sainsbury's stores and the Sainsburys.co.uk website will also berelaunched overnight. Sainsbury's was founded in 1869. Since that time there have only been a handfulof straplines but all have continued the company's heritage founded on qualityand value. Sainsbury's first advertised in the early 1900's with 'Sainsbury'sfor Quality; Sainsbury's for Value'. 'Good Food costs Less at Sainsbury's'appeared in 1959 and 'Everyone's favourite ingredient' was one of Sainsbury'smost popular campaigns in the 1990's. 'Making Life Taste Better' was introducedin 1999. 'Try Something New Today' goes live today. Notes • Sainsbury's re-signed Jamie Oliver in April 2005. The partnership began in 2000 • Jamie has filmed over 70 adverts for Sainsbury's • Sainsbury's renewed its contract with AMV BBDO to handle its above and below the line advertising account in April 2005. • Sainsbury's has 731 stores throughout the UK: this incorporates 465 supermarkets and 266 convenience stores • Sainsbury's updates the market on its pre-close second quarter trading on 7 October 2005. Enquiries: Investor Relations MediaLynda Ashton Pip Wood+44 (0) 20 7695 7162 +44 (0) 20 7695 6127 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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