Sainsbury’s has revealed that it now has seven stores operating under its new Neighbourhood Hub format.
The group began rolling out the concept last year following limited trials. The outlets are a food-led extension of its existing convenience offer but in a larger format (around twice the size of a standard Sainsbury’s Local). They offer a broader range of locally tailored products and services across food, beauty, clothing, seasonal and general merchandise. The format is said to cater to the shift seen throughout the pandemic towards longer shopping missions.
In addition, most feature an Argos Click & Collect facility where customers can collect their online orders whilst picking up their groceries.
A site in Woodhall Spa was the pilot for the new format and went live in 2019. Sainsbury’s has since opened Bishop’s Waltham and Midhurst stores in November 2020 and refurbished its Melbourne Derby Road and Billingshurst stores in March this year. The latest Neighbourhood stores in Whitstable High Street and Penwortham were upgraded last month.
Sainsbury’s is working to open around 18 more Neighbourhood Hubs over the next few years, in addition to investing in upgrading some of its current convenience stores into the new format.
Patrick Dunne, Sainsbury’s Property Director, said: “Our newest hub stores look great and I’m sure our customers will enjoy doing more of their shopping closer to home. We’re continually investing in our store network and adapting our estate to ensure it best reflects our customers’ changing shopping habits and local demand.
“Our Neighbourhood Hubs have proved extremely popular and that has really motivated the team to open more for our customers through a combination of acquiring new sites and upgrading current stores.”
Sainsbury’s opened 15 c-stores last year and closed 9, taking the total to 813. However, the convenience division suffered a 9.4% fall in sales after many of its urban sites were impacted by reduced footfall. This was partly offset by better performance of stores in neighbourhood locations that benefited from customers shopping locally.
NAM Implications:
- Sainsbury’s Hub stores still obviously under the Sainsbury’s HQ spotlight.
- Therefore opportunities for suppliers that propose initiatives that secure centre-stage spots…
- …before the spotlight moves elsewhere…
