Sainsburys delivers a solid performance
The companys first quarter trading statement for the 12 weeks to 11 June 2011 reveals total sales up 7.3 per cent (4.3 per cent excluding fuel).
Justin King, Chief Executive, said, "We've delivered a solid sales performance, in line with our expectations, in spite of the continued tough consumer environment. Fuel price inflation combined with strong fuel volume growth resulted in an increase in total sales of 7.3 per cent, with like-for-like sales up 4.8 per cent. Excluding fuel, total sales were up 4.3 per cent, with like-for-like sales up 1.9 per cent."
King added that Sainsbury’s key own label ranges, basics, by Sainsbury's, and Taste the Difference, all saw volume and sales growth in the period with basics being their fastest-growing brand, and is now number two in the value market with 22.3 per cent market share.
In the quarter, the company launched their new ‘Feed Your Family for £50’ meal planner. King says that customer response has been very positive and since the launch in May over one million customers have logged on to the website to learn more. Products featured in the planner have seen sales and volume uplifts of over 20 per cent.
The convenience business grew at 20 per cent, underpinned by strong like-for-like growth, and our groceries online business grew at over 20 per cent. General merchandise online continued to grow strongly, supported by the accelerated roll-out of the Click & Collect service to a further 240 stores, including convenience stores. This brings the total Click & Collect stores to 400, a big step towards our objective of 800 stores by Christmas.
In line with plans, space grew, with the opening of two new supermarkets, one replacement, three extensions and 13 convenience stores.
King said he expects the market environment to remain very competitive.
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