How Sainsbury’s Places Omnichannel at the Heart of Its Business
During the COVID-19 pandemic, people all around the globe flocked to online supermarkets to fulfil their grocery needs, whilst simultaneously remaining tucked away safe at home.
Significant numbers of UK households began relying on home delivery services for their weekly shop, so much so that delivery slots at some of the country’s most popular supermarket brands were often booked solid for weeks in advance. And, now the danger has largely passed, there is evidence that this pattern of online grocery shopping will continue to grow.
According to Statista, in 2022 42.6% of UK customers said they will continue to use online shopping for their groceries at the same level they did during the pandemic, with 6.6% stating they will do so more often in the future. This is compared to just 32.8% who said they would reduce their reliance on online grocery shopping and 18% who planned to stop using the option entirely.
Sainsbury’s
As the UK’s second largest supermarket brand – behind Tesco – Sainsbury’s has been responding to these changes in shopping behaviour and evolving its marketing strategy to meet the demands of an increasingly online customer base.
While the supermarket chain has noticed a normalising of online sales compared to in-store shopping since the country reopened for business, recent figures have shown that online sales are now nearly double what they were before the pandemic, indicating that the COVID-19 crisis acted as an accelerant which has turned more people onto online as an option for their grocery shopping.
Online sales in the first quarter of 2022 were 94% ahead of the same period in 2019 with Sainsbury’s stating it believes its solid marketing strategy, combined with the adoption of new digital solutions designed to supercharge its customer experience have enabled it to retain the additional customers it acquired during the pandemic.
And, now the company finds itself needing to adapt again in the face of the UK’s cost of living crisis which is seeing millions of citizens struggling to pay essential bills thanks to rising energy costs and inflation driving up the price of many everyday grocery items – a situation which has been made significantly worse thanks to economic fallout from the disastrous, and mercifully brief, tenure of Liz Truss as the country’s Prime Minister.
"We really understand how hard it is for millions of households right now and that’s why we are investing £500 million and doing everything we can to keep our prices low, especially on the products customers buy most often,” said Sainsbury’s CEO, Simon Roberts. "We’re working hard to reduce costs right across the business so that we can keep investing in these areas that customers care most about. The progress we are making on improving value, quality, innovation and service is reflected in our improved grocery volume market share.”
Just Walk Out
A huge part of the Sainsbury’s strategy is also focussing on omnichannel technology designed to augment the in-person shopping experience with quality-of-life improvements that add new levels of convenience.
For example, Sainsbury’s has been taking a leaf from the book of Amazon and its cashierless convenience store concept, Amazon Go. Working with the ecommerce behemoth to implement the exact same Just Walk Out technology at a select few locations, Sainsbury’s will be offering customers the chance to shop without needing to checkout or join any queues. They will simply scan a QR code on their Sainsbury’s card when entering the store, take the items they need, and let the RFID technology complete the purchase automatically on leaving.
Sainsbury’s became the first international third-party partner to use the technology when it was implemented in the Sainsbury’s convenience store at Holborn Circus, London. Store colleagues are on hand to assist customers and keep shelves well-stocked. The Holborn store was selected as the test location for Just Walk Out technology as it is primarily focused on offering on-the-go food and drink to busy local workers who want to complete their shopping as quickly as possible.
"Just Walk Out technology provides shoppers with a fast, efficient, and seamless way to shop and is currently in dozens of Amazon Go stores, select Amazon Fresh stores, and other third-party retailers in the US,” said Sainsbury’s in a press release. "Customer demand for contactless ways to shop in stores has increased, especially since the start of the pandemic.”
Final Thoughts
Thanks to a solid digital first strategy and a keen interest in the latest convenience store technology, Sainsbury’s has set itself up to thrive in the post-pandemic retail landscape. With the Amazon Just Walk Out Partnership, Sainsbury’s customers can enjoy new levels of convenience and shop without contact or cashiers if that is their preference.
Omnichannel technology is certain to be part of the conversation at eTail UK 2023, being held in April, at the QEII Conference Centre, London, UK.
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