Evaluating Sainsbury's financial service products

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ACKNOWLEDGEMENT

No words can express my appreciation and gratitude to my research advisor _______ through the course of this research, Professor _____has taught me numerous values that extend well beyond the realm of _________ (Your Subject Name). His emphasis on dedication to work and his valuable and practical insights of life are some of the major highlights of my education at The University _________.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for the academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

TABLE OF CONTENTS

Acknowledgementii

Declarationiii

List of Tables and Figuresv

Introduction1

Overview of Sainsbury1

Sainsbury Bank: A Diversification Strategy by Sainsbury Plc2

Sainsbury Online Financial Services and Traditional Banking6

The Competitive Advantage of Sainsbury over other Banks8

Brand Image9

Availability of Banking Services9

Sainsbury Bank Performance Vs Other banks10

Conclusions15

References17

LIST OF TABLES AND FIGURES

TABLE 1: FINANCIAL RATIOS OF RBS11

TABLE 2: FINANCIAL RATIOS OF BARCLAYS BANK12

TABLE 3: FINANCIAL RATIOS OF SAINSBURY BANK12

TABLE 4: COMPARISON OF PROFITABILITY RATIOS13

TABLE 5: COMPARISON OF LIQUIDITY RATIOS14

TABLE 6: COMPARISON OF EFFICIENCY RATIOS14

FIGURE 1: ANSOFF MATRIX3

Evaluating Sainsbury's financial service products

Introduction

J Sainsbury (Sainsbury or “the company”) is engaged in retailing services with business interests in financial services and property investments. The company operates retail stores and banks apart from engaging in property investment businesses primarily in the UK. It is headquartered in London, the UK and employs 148,400 people of which 100,300 are part-time employees. The company recorded revenues of £21,102 million (approximately $32,748.2 million) in the financial year ended March 2011 (2011), an increase of 5.7% over 2010. The operating profit of Sainsbury was £851 million (approximately $1,320.7 million) in 2011, an increase of 19.9% over 2010 (www.sainsburysbank.co.uk).

This report had three major objectives, analyse the benefits gained by Sainsbury's plc from its banking activities, to establish in what ways 'Sainsbury' bank differs from a traditional bank, and to evaluate the success of Sainsbury's banking products against its competitors.

Overview of Sainsbury

Sainsbury is engaged in retailing, financial services, and property investment businesses in the UK. The company's retail stores and website offer a range of food and non-food products primarily under the Sainsbury's brand. In addition, it provides banking services like insurance, credit cards, savings products, and loans.

The business of Sainsbury is organized into three operating segments: retailing (supermarkets and convenience), financial services (Sainsbury's Bank joint venture), and property investment (British Land joint venture and Land Securities joint venture).

The financial services segment consists of the operations of Sainsbury's Bank (trading as Sainsbury Finance). The bank is jointly owned by J Sainsbury and Lloyds Banking Group. The products offered by Sainsbury Bank include saving products, loan products, credit cards and a number of insurance products to around 1.4 million active customer accounts. The company has 118 travel money kiosks in its stores, and more than 1,200 ATM machines.

The company's business is organized into three operating segments: retailing (supermarkets and convenience stores), financial services (Sainsbury's ...