Sainsbury's like-for-like sales edge up 0.1% in fourth quarter
Sainsburys saw its like-for-like sales edge up 0.1% excluding fuel in its fourth quarter. The increase marks the first quarterly rise for the business in over two years.
In the nine weeks to 12 March 2016, total retail sales increased by 1.2%.
Mike Coupe, Sainsbury’s chief executive, said: "We have delivered a strong performance this quarter. Our supermarkets recorded both like-for-like transaction and volume growth and we continue to exceed our internal metrics for service and availability. We also maintained our market share in the quarter. The market will remain competitive as food deflation continues to impact sales growth.”
Sainsbury’s said it is “progressing well” with its investment in 3,000 own-brand products particularly those aimed at consumer demand for healthy eating products. New lines have included vegetable product innovations such as butternut squash noodles and spiralized courgette as well as a number of new bread lines.
The supermarket said its promotional participation levels have continued to reduce year-on-year, running at an average of 28% for the quarter.
Coupe said: “Customers have told us that multi-buy promotions do not meet their shopping needs today. They are often viewed as confusing, create storage challenges and unnecessary waste. In response to this, we recently announced that we will be phasing out the vast majority of our multi-buy promotions across grocery products by August this year. We will continue to simplify our trading strategy in favour of lower regular prices.”
Groceries online sales grew at nearly 14% in the period and orders by nearly 19%.
Coupe added: “We have traded well this year and are making excellent progress implementing our strategy. The market will remain competitive but we are confident that we will continue to outperform our major peers."
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