The Finance Owl

Banks – Loans – Mortgages – Money


Posted by theaccountant October - 8 - 2009 - Thursday

Sainsburys BankSainsburys Bank has today provided updated growth figures to the market for the last quarter’s trading results. Sainsburys apparently experienced quarterly year-on-year growth for non-petrol products, but has warned that future growth may slow down. The impact of the future increases to the VAT rate are expected by many to have an adverse impact on Sainsburys volumes, as a consequence to the price to the consumer increasing.

Sainsburys, like many other high street supermarkets, have been attacking the financial products market traditionally the domain of the banks. Indeed, Sainsburys appears to have been making strong progress in banking areas, such as Sainsburys personal loans and Sainsburys travel insurance.  It appears that the high street supermarkets, such as Sainsburys and Tescos are more than willing to take on the banks.  The supermarkets are often viewed by the media as fast and nimble, this is in stark contrast to the Goliath banks which are often viewed as slow to react to consumer needs.

In summary, it appears that Sainsburys will have more than a few challenges ahead, with increases to VAT and the continued economic downturn.  Yet, despite these challenges I feel that Sainsburys and the other supermarkets have a reasonable chance of stealing market share from the high street banks.

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