Sainsbury’s Local targets city centre and neighbourhood shopping

Sainsbury's Local Oxted, upmarket neighbourhood store

Sainsbury’s is expanding its Local convenience store business based on two models: neighbourhood shops and a city centre, food-on-the move format.

According to convenience director, Dido Harding, the retailer has been trialing five new formats based around these two key shopping missions.

The neighbourhood format is further divided into upmarket, mid-market and challenged, says Harding.

Trial sites, including the upmarket neighbourhood location in Oxted, Surrey, are reported to be recording sales uplifts of 25%.

Harding reveals the new sites include ideas taken from other retailers such as Marks & Spencer’s winding queuing system. Other initiatives are unique to Sainsbury’s and follow in-depth research.

The Oxted store, for example, features 10% more fresh food, simplified ranges, an attractive bakery section and a new hot food-to-go counter.

Harding, who joined Sainsbury’s from Tesco in March 2008, has been charged with improving the convenience stores ahead of an expansion of the 300-strong chain.

Sainsbury’s plans to open 50 Local stores in 2009/10 and a further 100 in 2010/2011. It has recently acquired 24 stores from the Co-operative Group, five of which will become Sainsbury’s Locals, adding 20,000sq ft.

“Justin [King’s] brief to me was, work out what convenience could be when it grows up, because it’s either got to grow up and be a material part of the business, or we shouldn’t have it. And hence all this work really,” Harding told the Financial Times.