Sainsbury's (1)Origin and growth: Sainsbury's was established as a partnership in 1869, when John James Sainsbury and his wife Mary Ann opened a shop at 173 Drury Lane in Holborn, London.[9] Sainsbury started as a retailer of fresh foods and later expanded into packaged groceries such as tea and sugar. His trading philosophy, as stated on a sign outside his first shop in Islington, was: "Quality perfect, prices lower".[10]
Shops started to look similar, so in order that people could recognise them throughout London, a high cast-iron 'J. SAINSBURY' sign featured on every shop so their shops could be seen from a distance,[11] and round-the-back deliveries started to add extra convenience and not upset rivals due to Sainsbury's popularity. |
Sainsbury's (2)Origin and growth: In 1922, J Sainsbury was incorporated as a private company, as 'J. Sainsbury Limited', when it became the United Kingdom's largest retailer of groceries.[13]
By this time each shop had the following departments: dairy, bacon and hams, poultry and game, cooked meats, and fresh meats. Groceries were introduced in 1903, when John James purchased a grocer's branch at 12 Kingsland High Street, Dalston. Home delivery featured in every shop, as there were fewer cars in those days. Sites were carefully chosen, with a central position in a parade selected in preference to a corner shop. This allowed a larger display of products, which could be kept cooler in summer, which was important as there was no refrigeration. |
Sainsbury's (3)Origin and growth: By the time John James Sainsbury died in 1928, there were over 128 shops. His last words were said to be: 'Keep the shops well lit'. He was replaced by his eldest son, John Benjamin Sainsbury, who had gone into partnership with his father in 1915.[15]
During the 1930s and 1940s, with the company now run by John Benjamin Sainsbury, the company continued to refine its product offerings and maintain its leadership in terms of shop design, convenience, and cleanliness.[16] The company acquired the Midlands-based Thoroughgood chain in 1936.[17]
The founder's grandsons Alan Sainsbury (later Lord Sainsbury of Drury Lane) and Sir Robert Sainsbury became joint managing directors in 1938, after their father, John Benjamin Sainsbury, had a minor heart attack. |
Sainsbury's (4)Origin and growth: Following the outbreak of World War II, many of the men who worked for Sainsbury's were called to perform National Service and were replaced by women. The Second World War was a difficult time for Sainsbury's, as most of its shops were trading in the London area and were bombed or damaged. Turnover fell to half the prewar level. Food was rationed, and one particular shop in East Grinstead was so badly damaged on Friday 9 July 1943 that it had to move to the local church, temporarily, while a new one was built. This shop was not completed until 1951. |
Sainsbury's (5)(1956–1991): In 1956, Alan Sainsbury became chairman after the death of his father, John Benjamin Sainsbury.[18] During the 1950s and 1960s, Sainsbury's was a keen early adopter of self-service supermarkets in the United Kingdom; the first self-service shop within the country was a co-operative shop opened in 1942.[20] On a trip to the United States of America, Alan Sainsbury realised the benefits of self-service shops and believed the future of Sainsbury's was self-service supermarkets of 10,000 sq ft (930 m2), with eventually the added bonus of a car park for extra convenience.[21] The first self-service branch opened in Croydon in 1950. |
Sainsbury's (6)(1956–1991): Sainsbury's was a pioneer in the development of own-brand goods; the aim was to offer products that matched the quality of nationally branded goods but at a lower price.[23] It expanded more cautiously than did Tesco, shunning acquisitions, and it never offered trading stamps.
Until the company went public on 12 July 1973, as J Sainsbury plc, the company was wholly owned by the Sainsbury family. It was at the time the largest ever flotation on the London Stock Exchange;[25] the company rewarded the smaller bids for shares in order to create as many shareholders as possible. A million shares were set aside for staff, which led to many staff members buying shares that shot up in value. Within one minute the list of applications was closed: £495 million had been offered for £14.5 million available shares. The Sainsbury family at the time retained 85% of the firm's shares. |