The time is now for Sainsbury’s as UK grocery giant eyes huge potential for growth and market share gains

Sainsbury’s has more potential for growth and market share gains than any other grocer in the UK.

At present, however, there is too much focus on reducing costs and not enough focus on innovation.

That’s the view of Brittain Ladd, a supply chain consultant and former Amazon executive.

In a LinkedIn post, he said: “Although the size of the United States grocery market is around $850 billion annually, I believe the most fiercely competitive grocery market is that of Great Britain, with a market size of $295 billion.”

The market is dominated by four British retailers with a long history of operating in the country: Tesco, Sainsbury’s, Morrisons, and Asda.

“Two German owned discounters, Aldi and Lidl, have forced all the other players to rip out costs and improve prices to avoid losing customers. It’s fair to state that Aldi and Lidl have severely disrupted Great Britain’s grocery industry,” Ladd noted.

He added that Amazon has a presence in the UK, but its grocery strategy is “severely lacking in my opinion. Note to Amazon: Close all Whole Foods stores.”

Ocado Group, meanwhile, is a player in groceries but, like Amazon, it has yet to come close to achieving its potential.

Ladd commented: “I’m often asked which of the grocery retailers in the UK do I admire the most and who do I believe has the most potential.”

“In my opinion, Sainsbury’s has more potential for growth and market share gains than any other grocer in the UK. I’ve also stated several times that if Amazon wants to acquire a grocery retailer in the UK, they should acquire Sainsbury’s.”

“Sainsbury’s has reached an inflection point within the company. CEO Simon Roberts, someone I consider to be one of the best CEOs globally in the grocery industry, has outlined a transformation strategy that will increase market share and revenue, and also remove costs.”

“I’ve read the plan and I’ve spoken with current and former Sainsbury’s executives in off the record discussions. I believe the plan is sound. However, I do have several concerns.”

Roberts should, according to Ladd, leverage the leading thought leaders to gain a competitive advantage.

“Example: 345 Global has the most advanced integrated store planning, merchandising, sales and marketing, 3D, and digital twin software on the market.”

“Founder and CEO Mark Edwards would be an excellent advisor to the CEO and also to Graham Biggest (Chief Transformation & General Merchandise Commercial Officer at Sainsbury’s), Rhian Bartlett (CCO: Food), Mark Given (Chief Marketing Officer), and Clodagh Moriarty (Retail & Digital Director).”

The retailer should also design and implement a supply chain strategy and logistics network that enables growth vs. reducing costs, and introduce automated store fulfilment centres (which would be a first in the UK).

Ultimately, it needs to lead with innovation.

“I’m concerned that there is too much focus on reducing costs and not enough focus on innovation. For example, the science of auctions offers incredible opportunities for Sainsbury’s to beat everyone on price including Aldi and Lidl.”

“The time is now for Sainsbury’s. I wish them success,” Ladd concluded.

Sainsbury’s did not respond to our request for comment.