The Motley Fool

Why J Sainsbury Plc Is Blowing Away The Competition

I was intrigued to learn this week that easyJet founder, Sir Stelios Haji-Ioannou, is opening a supermarket in a former office block in Croydon. Unsurprisingly, he plans to call the venture easyFood and will stock a range of non-branded tinned and packet foods as well as some household items.

His aim is to compete with discount retailers such as Aldi and Lidl, both of whom have enjoyed considerable success since the advent of the credit crunch. He also thinks there could be a gap in the market below such discounters, as around one in eight people in the UK visit a food bank. Should the supermarket be successful, he plans to roll it out on a bigger scale in 2014.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

However, isn’t he missing the point? Surely competing with food banks is a non-starter, since your competition is not charging people anything. Even if easyFood is very, very cheap it will still find it tough to compete with ‘free’.

Furthermore, to compete solely on price is a dangerous game and is unlikely to result in a viable, scalable business. Certainly, the British public want low prices; however, when a supermarket offers good value for money it can usually achieve higher margins. In other words, low prices and high quality equals success.

One such supermarket that has been able to offer customers excellent value for money is J Sainsbury (LSE: SBRY) (NASDAQOTH: JSAIY.US). Its ‘live well for less’ and ‘brand match’ campaigns have proved highly popular among a British public that seeks good value and is willing to pay more than it would at the likes of Lidl and Aldi (and easyFood) to obtain it.

In addition to continually gaining market share throughout the credit crunch, Sainsbury’s also provides shareholders with an attractive yield of 4.3%, while shares currently look good value on a price-to-earnings ratio of 13. This compares favourably to the FTSE 100 on 14.9 and the consumer services industry group (to which Sainsbury’s belongs) on 17.2.

Certainly, Sainsbury’s looks to be an attractive investment at the moment, but I would recommend you take a look at this exciting stock which will also be of significant interest to income-seeking investors.

In fact, it’s best described as Motley Fool’s Top Income Share For 2013 and you can read all about it – for free – by clicking here

> Peter owns shares in Sainsbury’s.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!