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March 4, 2022

Sainsbury’s Food Halls restructure is prompted by demand for value and variety

By GlobalData Consumer

Sainsbury’s has recently announced plans to close 200 in-store cafes and replace them with food halls. This is part of a wider restructuring plan that aims to reduce costs and transform its dining, takeaway and home delivery services. It highlights the growing pressures on supermarkets to cater to consumers’ needs and find ways to maintain their loyalty. With rising inflation and the cost of living in the UK, consumers are likely to look for stores where they can find the best value and product availability.

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To replace the cafes, Sainsbury’s is planning to open 30 new restaurant hubs in its stores in partnership with Boparan Restaurant Group – which owns chains such as Gourmet Burger Kitchen and Carluccio’s. The supermarket chain is also planning to open 30 Starbucks sites as part of a plan to roll out its dining offering in 250 stores over the next three years. These new partnerships are likely to enhance the overall consumer experience as, according to GlobalData’s 2021 Q4 consumer survey, a quarter (24%) of consumers in the UK find a store’s layout and overall experience to be the most influential factor when deciding where to do their grocery shopping. With the tightening of purse strings, supermarkets are vying to grab a bigger piece of pie from consumers’ daily spend; by offering services like rapid delivery, and now with the concept of food halls with a range of restaurants and cuisine types together, consumers can also choose to get their meals and groceries delivered at their doorstep at the same time.

The choice of partners may not be an obvious one, especially because Carluccio’s went into administration in 2020, following restaurant closures during the pandemic because of a slump in casual dining. Following this, it was acquired by the Boparan Restaurant Group. Sainsbury’s has chosen this partnership because it is more family-friendly, and therefore suits Sainsbury’s middle class, suburban clientele. This partnership will also benefit the Italian chain as a rise in grocery spending during the pandemic has made an expansion into retail an obvious move, helping the chain, which was isolated during the pandemic, to tap into Sainsbury’s consumers by offering both dine-in and takeaway services. It plans to open smaller ‘Caffè Carluccio’s’, which will offer breakfast and light meal menus.

It will be interesting to see how other retailers will respond to this move, as this partnership unfolds in the coming months. If proven successful, this hybrid model will pave the way for more retail and foodservice partnerships.

Free Report
img

How is technology having an impact on Consumer buying behavior?

As the world rapidly becomes more connected, it is important for brands to understand the impact that improved technology is having on consumer purchasing behaviors. To react effectively, brands must know how to engage with increasingly digitally savvy consumers. GlobalData’s latest Trend Tracker report provides an analysis of Digital Lifestyles – one of GlobalData's top consumer trends for 2022. The report includes an overview of how digital lifestyles are evolving, including the significant impact that the COVID-19 pandemic had on accelerating digitalization, and how this trend is emerging across different Consumer sectors. Key features included in the report:
  • A breakdown of the trend’s prominence across sectors
  • Insights into consumer online penetration, preferred electronic devices and engagement
  • The key drivers and challenges impacting the digital lifestyles trend
  • A spotlight on key innovations set to reshape the consumer landscape
  • Analysis of what’s next for digital innovations and how brands can leverage the trend
Download this report to keep in touch with the more digital consumer.
by GlobalData
Enter your details here to receive your free Report.

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