Consumers more satisfied with discount retailers than major supermarkets

Over the past couple of years discount supermarkets have become increasingly popular amongst consumers, and this is due to the financial problems that many households have faced, which has forced them to seek out ways in which they can save money on their monthly outgoings such as their shopping bills.

Many have started to use discount supermarkets in addition to or instead of the major supermarket giants, and a recent poll has shown that customers seem to be more satisfied with these discount stores compared to the supermarket giants.

A recent report has shown that when it comes to the affections of customers, discount stores such as Lidl and Aldi have rated higher than the big name supermarkets such as Tesco, Sainsbury’s, and Asda. The measure of customer satisfaction showed that the discount retailers managed to score an impressive 61 percent in terms of customer satisfaction. The big name supermarkets, on the other hand, did not do as well.

Asda and Tesco both scored less than 50 percent in the customer satisfaction polls, and the most popular of the supermarket chains, Sainsbury’s, only scored 58 percent which was still less than the discount supermarkets.

Waitrose fared better than the discount stores, scoring an impressive 79 percent when it came to customer satisfaction levels. The study was carried out by consumer campaign group Which? and involved looking at areas such as staff attitudes, prices, and choice.

A spokesperson for Which? stated: ‘The success of some budget supermarkets in our survey proves that savvy shoppers can make the most of their money without compromising on quality. UK shoppers want the whole package – great value for money, a wide range of quality products and a pleasant shopping environment. It’s not rocket science, but those supermarkets that consistently get it wrong should beware – shoppers will vote with their feet and take their business elsewhere.’

Tags: supermarket chains, Waitrose, tesco, quality products, supermarket, discount supermarkets

Over £1bn to be transferred between credit cards every month

Up to £1.1 billion is expected to be transferred between credit cards every month, according to new research.

Findings from a study by Sainsbury’s Bank showed that an estimated 716,000 consumers are responsible for the transfer of the sum.

The average transfer balance is £1,500 but one in ten consumers intend to transfer plans worth £4,000.

Donald MacLeod, head of cards with Sainsbury’s, said research indicates that 40 per cent of card holders think it will take longer than a month to clear their current balance.

“Although there are a number of credit cards offering introductory 0% on balance transfers, there is a considerable difference in their duration so people need to choose carefully. Also, when choosing a card for a balance transfer, it is also worth considering what else it offers,” he added.

Meanwhile, research from Fool.co.uk showed that UK spenders are more likely to use their cards than cash when paying for everyday purchases.

Tags: Business Finance, Fool.co.uk, balance, Donald MacLeod, fool

Car insurance premiums rise by 5%

Car insurance premiums have risen by five per cent over the course of the past year, according to new research.

Findings from Sainsbury’s Bank revealed that the average premium was £497.26 in December 2007, compared with £472.52 in December 2006 which saw an increase of 5.24 per cent.

Joanne Mallon, Sainsbury’s Car insurance manager, said: “Car insurance premiums continue to rise which makes it all the more important for motorists to shop around for competitive insurance.”

She added that “the trick” is cutting your costs without cutting your cover.

Those motorists aged between 40 and 50 saw an average rise of seven per cent, which was the highest of any age group, higher even than the under 25s who had rises of just 6.59 per cent.

According to bank’s figures, men continue to pay more for their car insurance than women on average – £525.35 compared with £453.38.

Meanwhile, the bank has also warned drivers to be wary of ‘frosting’, a technique thieves use to take advantage of drivers who leave their cars unattended while warming up the engine.

Tags: car insurance premiums, Insurance, car, age, sainsburys, course, trick, Sainsbury

Nearly 2m pet insurance claims made by consumers

Up to 1.8 million pet insurance claims are made per year by owners according to research from Sainsbury’s Bank.

A further 18,000 claims are made for reasons including when a pet is lost or stolen.

Sainsbury’s warns that as many as 75 per cent of cats and dogs are not insured and as a result estimates that 5.5 million treatments are paid for by owners.

Claire Moyles, pet insurance manager at Sainsbury’s said: “The pet insurance industry not only deals with a huge volume of cat and dog claims every year, it deals with a staggering breadth of ailments and problems.”

She added that insurance can be more useful than expected as events when you need to claim could be “more common than you wish to consider”.

The estimated cost of owning a cat and a dog is £7,200 and £9,000 respectively while vet fees make up 19 per cent of the annual spend on dogs and 21 per cent for cats.

Meanwhile, Sainsbury’s Bank has also reported that the UK has seen an upsurge in the number of property damage claims in the wake of the recent bad weather.

Tags: cat, sainsburys, annual spend, cent, United Kingdom, result, Nectar loyalty card

Christmas consumers expect debt to hang around

Only 61 per cent of spenders expect to clear their Christmas debt by end of January, according to new research.

Research from Sainsbury’s Bank revealed that 483,000 consumers believe paying off their debts will take over a year and 71 per cent of this figure are female.

Donald MacLeod, head of cards, Sainsbury’s said: “We estimate that around 18 per cent of Christmas spending was placed on credit cards.”

“Our research indicates that around 8.6 million people intended to put half or more of their festive spending on cards,” he continued.

He advised that those Christmas consumers who anticipate having difficulty in paying off their debts should look at spreading the cost of their festive debts.

Sainsburys announced news of better-than-expected turnover with sales over the third quarter were up by 3.7 per cent, excluding petrol. This compares with 3.1 per cent in the second quarter and is Sainsbury’s 12th consecutive quarter of growth

The bank predicted nearly £1.5 million per minute would be spent in the Christmas Eve rush.

Tags: christmas, Marketing, 5 million, cost, sainsburys, spending

Consumers expected to spend £2.7b more this Christmas

An estimated £2.7 billion more is to be spent this Christmas by consumers compared with last year, according to a survey by Sainsbury’s Bank.

People intend to spend £11.85 billion more on shopping in the last week before Christmas than in 2006.

The findings also show that 18 per cent of this figure, approximately £2.1 billion, will be paid by credit card.

Donald MacLeod, head of cards, Sainsbury’s Bank, said: “I was surprised at…the fact that people were going to spend more this year than last year. All the press comment at the moment has been about there being a squeeze on [spending], but this doesn’t appear to be the case.”

He added that buying gifts during the build up to Christmas can benefit consumers as some retailers are already offering discounts. Unfortunately the risk is that some goods may already be out of stock.

Mr MacLeod also said that credit cards are “a very convenient way of doing your Christmas shopping”, as using them does not require consumers to carry cash.

Tags: Sainsbury, sainsburys, Mr MacLeod, week before christmas, press

Sainsbury’s increases interest free period on credit cards

The supermarket giant Sainsbury’s has been offering a range of financial products and services over the years, including some very competitive deals on credit cards.

According to recent reports the retail giant has now announced that its credit cards – which already offered an attractive ten months interest free credit on purchases – will now be offering an increased interest free period of twelve months, which is likely to attract increased custom as well as placing the cards amongst the top of the best buy tables.

Officials from Moneyfacts have stated that the cards are all the more attractive because they also offer a low rate life of balance transfer facility, so in addition to enjoy twelve months of interest free credit on purchases customers can also transfer costly existing credit card balances and enjoy a low rate of interest for the life of the transferred balance – the rate currently stands at 5.94%. The standard variable rate on the credit cards is 15.9%.

One official from Moneyfacts stated: “The standard and platinum deals were already competitive, but extending its offer to 12 months pushes its standard card to hold joint top position of the moneyfacts’ best buys, along with Halifax and HSBC, with all three offering a standard revert to rate of 15.9% APR. The Platinum card offer is market leading, with the next best interest free offer at 11 months. These cards also come with the added benefit of a lifetime balance transfer deal at 5.94% pa, which in today’s market is a pretty competitive. Combined with the 0% offer, these deals are a very attractive overall package.” 

She added that the Sainsbury’s credit cards were now looked upon as a five star deal, as they offered savings on both transferred balanced and purchases, making them great value and convenient.

Tom Smith
5th September 2007

Tags: transfers, credit, platinum, sainsburys, offer, increased, introductory, card, purchases, balance

Travel insurance a must for holidaymakers

Travel insurance is an absolute must when taking holiday time overseas, specialists have claimed.

InsureandGo, an online broker, claim that trips abroad without the necessary cover are incredibly risky and should be avoided.

Strongly urging all travellers to invest in some sort of cover, Perry Wilson, a spokesperson for InsureandGo, said: “Travel insurance should not be considered a luxury – it is essential for anyone going on holiday.

“We know people lead busy lives and sometimes things are left to the last minute and that’s why we have tried to make travel insurance as easy to buy as possible.”

He added: “Travelling without insurance simply isn’t worth the risk and we hope there is no excuse for not getting round to it.”

Meanwhile Sainsbury’s Bank, also concerned by holidaymakers shunning overseas cover, claimed that the situation was worsened by the strong surge in last minute deals.

Tags: sainsburys, claim, travel insurance, Perry Wilson, Insurance, overseas cover, finance

SainsburyÂ’s reports increasing online insurance

More and more Britons are purchasing insurance online, according to Sainsbury’s Bank.

The high-street insurer says that customers are increasingly turning to the internet for taking out their car, pet and even life insurance cover.

According to communications manager Natasha Virtue, “it is a growing trend. We’re seeing a steady increase.”

This increase has also led to an increasingly competitive market: “We’re actually encouraging people to seek four quotes if possible, because the more you can shop around, the better deal you’re likely to get”, she added.

However, Sainsbury’s still encounter customers who prefer to stick with more traditional telephone purchases: “You do get people who really just want to speak to somebody and got through all the details on the phone”, Ms Virtue said.

“It’s really just up to the individual… maybe [some people are] just doing [their] research at home online, and then you’ll get people that maybe want to pick up the phone after that. So it just provides both avenues for them, really.”

Tags: Sainsbury, Justin King, sainsburys, internet, telephone