Sainsbury’s now Feeling the Pinch

SainsburysThe new Chief Executive of Sainsbury’s one of the UK’s largest supermarket chains is a man on a mission. Mike Coupe has chosen to launch a major review of the way this retailer conducts its business due to a very disappointing trading update.

Times are certainly changing in the grocery business in the UK, and for the first time in decades all of the major supermarket chains are seeing their businesses suffer from a plethora of once much smaller budget supermarkets that are quite alarming taking vast amounts of business away from them.

It is going to be very likely that Sainsbury’s will be forced to cut its dividend and this announcement did of course have an instant effect on its share price, with many spectators stating Mike Coupe has something of an uphill struggle if they are to recover even a small amount of the ground lost to their competitors, of which there are no shortages of.

Sainsbury’s have already started a major advertising campaign on UK television in which they have announced a major shakeup in regards to their pricing policy, however it is not bearing any fruit at the moment as many consumers look at Sainsbury as a supermarket for more well heeled and affluent customers and a place where higher than average prices have always been the norm.

It is no longer the case of pile them high and sell them cheap, as many other major supermarket chains are very fearful of a price war, and are looking at different ways in which they can offer their customers true value without cutting prices to the core, but at the end of the day it is price and quality customers are looking for and any gimmicks are likely to be ignored.

If you are a Binary Options trader then you need to be very aware of the current state of the major UK supermarkets for it is likely to be the case that the share price of all of them are going to keep on getting lower, and you should be making your decision on which way to trade their options accordingly.

It may be worth you taking a step back for a while and taking a very short term view in regards to placing Binary Options on any of the major UK supermarkets for there is a lot of uncertainty surrounding them all, however therein lies the chance of making some fairly substantial gains if you can correctly predict the way the shares will move.