Weekly transactions and market share up for Sainsburys
In its interim results for the 28 weeks to 2 October 2010, Sainsburys outperforms the market
Total sales (inc VAT) are up 7.0% to £11,944 million (2009/10: £11,158 million). Total sales (inc VAT, ex fuel) up 4.8%. Like-for-like sales (inc VAT, ex fuel) up 2.0%.
Underlying operating profit is up 8.2% to £370 million (2009/10: £342 million). Profit before tax up 36.3% to £466 million (2009/10: £342 million).
During the first half of the year, the company created over 2,000 new jobs through store investment and weekly transactions are now over 20 million, up one million on last year. Sainsbury's market share grew to 16.2 per cent from 15.9 per cent (Kantar 52 weeks ending 3 October 2010).
The Convenience operation is now a £1 billion business and online growth is over 25 per cent.
‘Click & Collect' is now at over 140 stores.
Sainsburys also added 540,000 sq ft of gross space added and opened its first 100,000 sq ft store.
Justin King, Chief Executive said, "Sainsbury's has continued to outperform, as we offer healthy, fresh and tasty food at great value and continue to grow our new space. Customer numbers are now at an all-time high of over 20 million transactions every week, which is up one million on last year, a clear indication of our growing universal customer appeal. We are also pleased with the growth of our channels and services as we continue to extend our offer to more customers. We now have over 340 Convenience stores; online sales are growing by over 25 per cent and the Bank has delivered strong profit growth. Total sales (ex fuel) for the first half were up 4.8 per cent and like-for-like sales were up two per cent.
"Colleagues have worked hard to deliver great service, resulting in higher customer satisfaction. Further productivity savings, tight control on operating costs, together with our strong sales performance have all helped to deliver good profit growth. We have added gross space of 540,000 sq ft to our store estate, opening or extending 29 stores and creating over 2,000 new jobs with Sainsbury's. We remain on track to deliver our target space growth of 15 per cent over the two years to March 2011.
"As we enter the second half, we expect the economic environment to remain challenging. We remain confident that our universal customer appeal, combined with our strong space growth momentum, means we are in a good position to perform well in this environment."
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