Business history of Sainsbury’s

Sainsbury’s was the archetypal family business, starting out as a small store selling fresh milk, butter and eggs in Drury Lane, London.

The roots of Sainsbury’s Supermarkets go back to 1869 when John James and Mary Ann Sainsbury opened their first small dairy shop in London. At that time John James was in his twenty-fifth year.

The business was so successful that by 1882, John James Sainsbury had opened three more shops in London followed by a shop just outside London in Croydon.

The chain’s reputation for high quality fresh food at low price was established from the outset and remained utterly constant, John James displayed message ‘quality perfect, prices lower,’ on his stores in London and the Home Counties.

By 1900 Sainsbury’s was importing food from abroad. People have always complained about how much they have to pay for their food, but it is worth noticing that food is much cheaper now, compared to average wages than it was in 1900.

While growth was initially confined to London and the surrounding area, by 1922 Sainsbury’s was the largest UK grocery retailer.

By the time the founder died in 1928, there were 182 shops. John James had built the strongest of foundations, turning over 6 million from just 182 provision shops.

When the company went public in 1973, it was the largest ever London Stock Exchange flotation.

In 1974, Sainsbury’s first out of town supermarket opened on the edge of Cambridge and today most towns in Britain have a Sainsbury’s nearby.
Business history of Sainsbury’s