Sainsbury’s sales rise as it grows market share
Sainsbury’s has beaten forecasts for its fourth quarter with like-for-like sales growth of 2.5% (2.6% excluding fuel) in the 10 weeks to 17 March. This is better than the 2.1% increase forecast by analysts.
Total sales in the period were up 4.6% (5.1% excluding fuel) on the same period last year.
For the year to date like-for-likes sales are up 4.5% on the previous year, or 2.1% excluding fuel.
The retailer claimed its convenience, online and non-food operations are all growing ahead of the market, and that it is gaining market share in clothing and general merchandise. It said its convenience business was growing at over 20%, driven by a combination of new space and strong like-for-like sales growth.
Never Miss a Retail Update!The retailer said the performance was underpinned by the quality of its food offer. Chief executive Justin King explained: “We have invested over £85 million this year to make our fresh food better than ever, and this is delivering real results. Customers rate Sainsbury’s best for great tasting food.
“Our own label participation continues to lead the market, reflecting Sainsbury’s reputation for great quality at fair prices. Sales of basics grew by 10% and Taste the Difference grew by almost 20%.”
During the quarter the retailer added 170,000 square feet of gross new space by opening 19 new stores, extending 28, and by launching 73 new convenience stores.
Regarding the outlook King said: “The economic climate is likely to remain challenging, and we are committed to helping customers make their money go as far as possible.
“Nonetheless, the Diamond Jubilee, Olympics and Paralympics are wonderful opportunities this year for the country to join together and celebrate, and we expect these to underpin our continued growth as customers trust Sainsbury’s to make their celebrations really special.”
