Sainsbury's posts solid Q1 sales
SainsburyÂ’s said it put in a solid sales performance in its first quarter as it delivered its 34th consecutive quarter of sales growth.
In the 12 weeks to 8 June, total sales excluding fuel rose by 3.3% while like-for- like sales edged up 0.8% in what the supermarket described as a challenging market.
Sainsbury’s grew its market share by 0.2% to 16.8% in the quarter as it added nearly 82,000 square feet to its store estate with the opening of 19 convenience stores and one new supermarket. In addition, 13 convenience stores and six supermarkets were refurbished while the contribution to like-for-like sales from extensions was 0.2%.
The supermarket said its convenience business was a strong driver for growth, with sales up nearly 20% year-on-year underpinned by strong life-for-like sales. The online groceries business also performed well with growth of over 16% year-on-year.
Non-food sales increased at over twice the rate of food on the back of a strong performance from homewares. Sales of kitchen electrical and cookware items were particularly buoyant, growing by 34% and 23% respectively.
Sainsbury’s chief executive Justin King said: "This has been a solid performance in what continues to be a tough consumer environment.
"During the quarter we lapped some of our strongest performance of last year, culminating in the Queen’s Diamond Jubilee, and have extended our track record to 34 quarters of like-for-like growth.
"We are the only major grocer growing market share, up 0.2% to 16.8%."
Regarding the outlook, King said he expected the challenging economic environment to continue throughout the financial year. he added: "By helping our customers to Live Well For Less through our ongoing commitment to great quality own-brand products,Brand Match, competitive pricing and targeted promotions via Nectar and coupon-at-till, we are well positioned to continue to outperform the market."
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