Sainsbury’s ready for the worst
Supermarket sets store on Business Continuity Planning
November 15 2003
Following a fire which closed a branch of Tesco two years ago, the nearest Sainsbury’s store saw a 48 per cent increase in sales over the next four weeks.
The figure, revealed to delegates at recent Business Continuity Planning for Retailers conference in London, is evidence both of the potential threats, and in some cases opportunities, that retailers face when dealing with the range of crises which can overtake any business.
Steve Mellish, planning manager at Sainsbury’s set out the way in which Business Continuity Planning (BCP) has developed within the supermarket retailer over the past decade. From its origins in a recognition that the business needed a plan in place to deal with a potential IT failure, it has developed into a company-wide BCP framework.
This can be implemented for everything from events which impact on a single store – such as the Potter’s Bar train crash, which saw the adjoining Sainsbury’s store turned into a liaison centre for the emergency service – to national crises such as the fuel blockade in 2000 and the foot and mouth outbreak in 2001.
It was the effective response to those latter two events by Sainsbury’s Business Continuity Management Team that sealed its standing in the business. Mellish said: “From there on, any incident that could have an impact on our business or reputation is dealt with by the BCMT.”
Having put in place continuity plans to deal with any event which impacted on its head office, Sainsbury’s has moved BCP out from the centre, encompassing both stores and, crucially, key suppliers. All staff are issued with a card which lists emergency numbers, while managers and other key store personnel have a simple BCP guide to help them work through the crucial first hours of a crisis.
Mellish said: “You can’t plan in detail for every eventuality, but you can have a framework in place.” Feedback from the Potter’s Bar manager after the rail crash established how important the guide had been.
The aftermath of the Tesco fire established the potential for loss of trade a store-based disaster can present. Mellish said: “If you lose customers, there are always some you won’t get back.” The BCP guide for stores includes details of the three nearest alternative branches to which customers can be directed.
Another speaker at Business Continuity Planning for Retailers, Asda audit manager Ian Barraclough, pointed out that the incident also indicates the importance of planning for the additional trade generated by a rival store closure. He said: “If your store floods and has to close, most customers will understand, but if a rival store floods and your shelves are empty, they won’t be so forgiving.”
Business Continuity Planning for Retailers was organised by Retail Events. For details of upcoming conferences and events, visit http://www.retailevents.co.uk
