C/F/154. Store Wars! Sainsbury's vs. Tesco: Comparison of Financial Performance

This paper looks at the financial performance of the two main UK supermarkets Tesco and Sainsbury's. It finds that Tesco is still the leading supermarket in the UK, outstripping all of its competitors. On the other hand, Sainsbury's, despite some recovery is unlikely to close the gap between it and Tesco. Financially, Tesco is again the winner, beating of Sainsbury's by considerable margins. Although profitability is up for both companies, and both are financially sound, given the saturation of the present market, both would have to diversify further and more assiduously into other non-food products and services in order to sustain growth. Regarding share price, both are seeing a bullish trend, which is expected to continue through the holidays.