Sainsbury's enjoys strong Q2 growth
Sainsbury's has reported better than expected sales growth in its second quarter as it benefited from investment in its own-label ranges and the opening of new stores.
In the 16 weeks to 29 September total sales were up 4.4% excluding fuel, while like-for-like sales grew by 1.9%.
First half total sales rose 4.1% excluding fuel, with like-for-like sales in the period increasing by 1.7%.
Sainsbury’s said it was reaping the benefits of ongoing investment in its own-label ranges such as By Sainburys and Taste the Difference, adding that its penetration in the own-label market was increasing at a faster rate than any of the major supermarkets.
The supermarket's non-food offering increased its pace of growth to around three times that of food. Following the successful launch of the retailer's Denim Shop format, sales of jeans almost doubled year-on-year.
Sainsbury’s opened 49 convenience stores in its first half, delivering on its target of one to two stores per week. In the second quarter, the company opened five supermarkets, 28 convenience stores and two extensions, adding 267,000 square feet to its estate. This brought the year-to-date total to 330,000 square feet.
The online business continued to perform strongly, with growth of over 20% year-on-year.
Justin King, chief executive, said: "This has been a unique and special summer, during which we have delivered another quarter of good sales, outperforming the market in what remains a challenging retail environment. Our total sales are up 4.3%, and like-for-like sales up 1.9%.
"We expect the challenging economic backdrop to persist, but by helping our customers to Live Well For Less through competitive pricing, targeted promotions, quality own label products, and outstanding customer service, we are positioned to perform well coming into the important Christmas period."
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