Sainsbury sticks to plans to compete with discounters

9th Jul 2014 18:02

Sainsbury will remain focused on fresh produce and its own premium food brand to compete with discounters, according to the supermarket's new Chief Executive Officer (CEO) Mike Coupe.Coupe, who succeeded Justin King as CEO today, said the "reason people shop with us is they get a better quality product underpinned by values of the business"."We have also improved our price competitiveness," he said.The company has also entered the budget store market by bringing Netto back to the UK. Last month the grocer announced it had joined forces with Netto's Danish parent company Dansk Supermarked to open 15 stores by the end of 2015."The Netto deal just gives us more options," Coupe said. "It's a growing part of the market that we believe will continue to develop."His remarks come as discounters, such as Aldi and Lidl, take over market share from the UK's biggest supermarkets. The discounters have prompted the likes of Tesco, Asda and Morrison Supermarkets to slash prices. RD