Sainsbury’s is overhauling its own-brand Basics range, revamping the packaging and adding new products in a bid to show around a recently faltering performance.
The revamped packaging retains a similar orange and white colour scheme but adds larger blocks of colour and new product straplines to certain goods to make sure they’re “informative and fun”. Bakery, beauty and health and cooked meat products are some of the first to get the changes.
Sainsbury’s is doing a PR push online to advertise the update, targeting mums on sites reminiscent of Netmums.
Own-brand ranges helped boost Sainsbury’s results for the half-year. The supermarket claims that own-brand sales are growing at twice the speed of branded goods, with its premium “Taste the Difference” range growing at a double-digital pace and reaching £1bn in annual sales.
However, Sainsbury’s says Basics experienced a “marginal sales decline” inside the 28 weeks to twenty-eight September. The variety is facing growing competition from discounters equivalent to Aldi and Lidl, that are competing with the large four over price.
Sainsbury’s is likewise embroiled in a battle with Tesco over its “Price Promise” price-matching service, which compares own brand products, unlike Sainsbury’s “Brand Match” scheme. It has launched press ads to focus on the “values” behind its own-brand products and is looking for a judicial review of the advertising regulator’s decision to reject its complaint about ads for Tesco’s Price Promise.
This is the third of Sainsbury’s own-brand range to get a revamp. It relaunched its premium Taste the adaptation range in 2010 to tap into the expansion of premium products and announced plans to rebrand its core own-label products under a “by Sainsbury’s” banner the next year.
Rivals have also been overhauling their very own-brand ranges, with Tesco relaunching its premium “Finest” line last month and its “Everyday Value” range early last year.
Sainsbury’s is the single big-four supermarket chain to not lose market share over the last year. In accordance with figures from Kantar Worldpanel, it achieved sales growth of four.9 per cent for the 12 weeks ending 18 August, giving it 16.5 per cent of the grocery market.
The firm’s pre-tax profit grew 7 per cent within the 28 weeks to twenty-eight September to £400m, up from £374m a year earlier. Sales from stores open for a year or more, excluding receipts from petrol and VAT, increased 1.4 per cent.