Sainsbury's grows profits and sales
Sainsbury's has reported that underlying profit before tax rose 6.6% to £354 million in its first half. Revenue increased by 6.1% to £11.7 billion.
In the 28 weeks to 1 October, total sales, including VAT and excluding fuel, were up 4.3% with like-for-like sales up 1.9%.
The number of customer transactions increased by 1 million to nearly 22 million per week following the success of the Live Well for Less and Brand Match campaigns. The online business also grew, with an increase in grocery sales of around 20%.
Sainsbury’s opened seven new stores, 15 extensions and 37 convenience stores in the half year. It also expanded its Click and Collect service to 700 stores and said the service now accounts for over 40% of online general merchandise orders.
In addition, Sainsbury's achieved operational cost efficiencies of £50 million and said it is on track to achieve around £100 million cost savings over the year. This is a result of improved productivity, on-going procurement savings and simplification of in-store processes the retailer said.
Justin King, chief executive, said he is optimistic about the outlook despite the tough trading conditions: "We expect the economic environment to remain challenging for the foreseeable future but we are confident of further good progress in the Christmas period ahead," he said.
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