Sainsbury's reports modest growth
Sainsburys saw total sales rise by 7.8% (4.4% excluding fuel) in the 16 weeks to 1 October. Like-for-like sales increased by 5.4% (1.9% excluding fuel).
The results are a slight improvement on the first quarter results, when overall sales rose by 7.3%. However Sainsbury's said trading conditions remained tough as higher fuel prices continued to impact on customers' disposable incomes and put pressure on household budgets.
Sainsbury’s said its general merchandise and clothing businesses had continued to grow strongly in the quarter with sales growth well ahead of the grocery business.
Its convenience business also performed well with growth of 20%. A total of 24 convenience stores opened in the quarter, which Sainsbury’s said had delivered on its target of two new store openings per week.
There were four new supermarkets openings in the period and 12 store extensions, adding an extra 390,000 sq ft of new space and creating 1,500 new jobs.
Commenting on the results, Sainbsury's CEO Justin King said: "We have delivered a good sales performance in a tough consumer environment.”
However, King said he expected the market environment to remain “very competitive” for the foreseeable future.
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