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Monday 12 January 2015

Sainsbury's admits sales declined over the key Christmas period

The Christmas period in the UK is a time for family, friends and overeating on a grand scale. 

Naturally, the latter is the aspect on which all food retailers focus in the run up to the festive season, carefully using our hibernating instincts to push their promotional offerings in stores across the country. 

But did their marketing campaigns for Christmas 2014 work as planned?

Despite a high profile advert evoking the spirit of the iconic 1914 Christmas Truce ceasefire during World War I, Sainsbury's saw their profits fall by 1.7% over this key quarter. Low-budget rivals such as Aldi and Lidl are increasingly seen as the cause of this decline.

Jeremy Baker, Affiliate Professor in Marketing at the London campus, was asked by Channel 5 news to explain why this was the case for the supermarket giant.

"In a way, it serves them right," said Baker. "They knew that we were getting poorer, they didn't do much about it ... and in the end, we rebelled."

With the landscape of food retailing constantly in flux, this is sure to remain a fascinating area of study for any economist or marketeer.

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