United Kingdom's Sainsbury's announced it made profits last year despite economic crises. Business expansion and hiring of workers are also planned for this year.
Why is Sainsbury’s store expanding while others like M&S, Woolworth's and others are closing shop?
The answers are not clear but they could be traced to consumer’s shift in buying habits or preferences. UK consumers have slowly shifted to less expensive stores like Morrison, Asda and Tesco. Sainsbury’s thinks that the increase in sales and patronage could be traced to new M&S customers buying at the store.
Mail Online reports: Total sales at Britain’s third biggest supermarket rose 4.5 per cent for like-on-like basis in the 13 weeks to January 3.
The Grocer said 22 million customers visited its stores seven days before Christmas, while December 3 was the biggest trading day in its history.
Sainsbury’s expect to create between 3,000 and 4,000 jobs this year as it expands its local convenience store business. It is possible that some of the thousands of workers who lost their jobs at competing stores like M&S, Woolworths, Adams and Zawi could be accommodated.
Sainsbury’s is the third biggest supermarket in the United Kingdom. It is also the first store to announce that it made profits in 2009 in spite of the worldwide economic slowdown. Expansion and hiring has also been programmed for 2009. There are talks that a merger with Marks & Spencer may be in the drawing board.