Sainsbury's Local Award Entry: Sainsbury's Local Delivers Food on the Move in City Centres

September 1, 2009

Sainsbury’s new Local format leverages its strengths in fresh foods to be a convenient, food on the move retailer.

To vote in the International Convenience Retailer of the Year Award, sponsored by Imperial Tobacco and Airplay, click here. Voting closes at 2pm GMT on 11 September 2009.

Sainsbury’s new Local ‘food on the move’ format is changing consumer perceptions.

Launched in Fenchurch Street, London, it is winning a reputation as a competitive and conveniently located food on the move retailer. Aimed at busy commercial areas, the store format is focused on eat now and impulse missions with a clear breakfast, lunchtime and evening proposition.

Sainsbury's Local Fenchurch Street: new fascia

According to Sainsbury’s, one of biggest challenges was to deliver a consistent branded experience throughout the customer journey with product assortments that would anticipate the needs of customers at different times of the day.

The retailer also aims to create a customer experience that will help deliver its objective to grow its convenience store estate to over 1,000 in five years.

The first part of the customer journey is addressed in the new store design. Sainsbury’s has simplified and updated the fascia to fit with its brand values and have a more prominent presence on the high street.

External imagery is also used to communicate the fresh, tasty and healthy offer and entice customers into store.

Inside, navigation has been simplified to help customers find what they are looking for in-store.

The new format introduces clear zones for fresh, ambient and non-food offers.

New queuing system promotes impulse sales

Food to go is a key sales driver

Central to Sainsbury’s food on the move ambitions, there is a new food-to-go zone created by co-ordinating bakery, coffee, a salad bar and take-away hot food offer. This zone is clearly visible from the front of the store.

Imagery is also deployed internally to inspire customers with offers suitable for the time of day including porridge in the morning; soup at lunch time; hot food and ready meals in the afternoon and evenings. Internal branding throughout the store also works to reinforce Sainsbury’s brand identity and fresh food values.

In terms of the product offering, Sainsbury’s has scrutinised every inch of space to ensure the right range is delivered to support the new proposition. New display features, including side convenience units (SCUs) and ladder rack fixtures, have been introduced to ensure every trading opportunity is maximised.

The format makes the most of new technologies too. At the front end of the store, there is a greater number of self-scan tills than in a standard store to meet the shopper need for a speedy shop. Space has also been created to promote browsing and facilitate payment with the different payment methods clearly communicated to shoppers. A new queuing system provides shoppers with the choice of checking out through a manned till or via self-serve.

Sainsbury’s is managing the new queuing system with the creation of a 'checkout champion' to guide and help customers.

“We have also provided strong navigational POS and a call forward system. These factors combined have resulted in significantly reduced waiting time, which has been supported through customer feedback,” reports Sainsbury’s.

Product ranges within the queuing area have also been developed to promote additional impulse sales and drive basket spend.

The new format is scoring points on the environmental front too. Sainsbury’s has fitted the latest specification refrigeration, which is 20% more energy efficient, at the store. It is also encouraging customers to reuse carrier bags via POS and staff interaction at the checkouts.

In addition, the retailer promotes its support for British producers in branding throughout the store, underscoring a core company value of sourcing with integrity.

The results?
Sales have increased by more than 10% compared with control stores, driven by an increase in the number of transactions.

Sandwich sales, in particular, have soared while the new food to go zone is driving strong incremental business. Ready meals are selling strongly too and food on the move and bakery are key contributors to overall business.

And the shopper reaction?
Sainsbury’s has interviewed customers before and after the store launch. It found overall customer satisfaction increased from 69% to 80%. Shoppers rated the look and feel of the new format, the quality of fresh food items, the range, staff friendliness and speed through the checkouts.

Sainsbury’s new Local format is clearly a destination for food on the move.