J Sainsbury, the UK’s 3rd largest grocery retailer with a 16% market share, operates 537 supermarkets, 335 convenience stores, an online retailing arm and a bank. The company only operates in the UK and does not have international presence and is therefore confined to the economic growth of the UK. Margins are weak relative to competitors and given the UK’s current economic condition and the competitiveness of the sector, the company will have difficulty improving them in the near future. Sainsbury has been increasingly involved in the selling of non-food and property development which currently accounts for 25% of sales. Sainsbury’s new strategy of moving away from traditional grocery retailing has made the company the 7th largest clothing retailer in the UK. Currently 40% of new space developed is planned for non-food items, and Sainsbury expects that by 2020 around 45% of revenues will come from non-grocery. This strategy will most likely increase margins, and top and bottom line growth while at the same time reduce its defensiveness.