Sainsbury’s share price: Grocer trials one-hour home delivery service
J Sainsbury (LON:SBRY) is trialling a one-hour home delivery service, similar to Amazon’s Prime Now, Reuters has reported. The move underscores the ongoing supermarket war with the UK’s ‘Big Four’ looking to reclaim ground lost to German discounters Aldi and Lidl, and US e-commerce giant Amazon.
Sainsbury’s share price meanwhile has slipped deep into the red in today’s session, having fallen 1.25 percent to 228.40p as of 13:03 BST. The shares are underperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.13 percent lower at 6,646.14 points. The grocer’s shares have lost more than 14 percent of their value over the past year, and are down just under 11 percent in the year-to-date.
Reuters reported today that Sainsbury’s was trialling a new one-hour delivery service, dubbed ‘Chop Chop’, in the Wandsworth area of south London, which will have a delivery fee of £4.99. Customers living within three kilometres of its Wandsworth store can order up to 20 Sainsbury’s products for delivery to their home within an hour, using an app on Apple devices.
The newswire quoted the blue-chip grocer’s chief executive Mike Coupe as telling analysts at Bernstein that Sainsbury’s could see potential demand or the provision of a basket of food on a very short time scale. He further noted that the grocer had the nationwide store network, with large fresh food ranges in all of them, and the online retail knowledge, to provide such a service if the market develops.
Sainsbury’s move comes with online shopping turning into a battleground for supermarkets in their ongoing war. Analysts at HSBC forecast earlier this month that Walmart’s Asda might move to cut prices, pressuring the industry’s profits further. Sainsbury’s Coupe, however, told Bernstein that he saw no reason for rival Asda, under new CEO Sean Clarke, ‘to go hard on price’.
As of 13:22 BST, Friday, 15 July, J Sainsbury plc share price is 228.00p.