Healthy Foods Drive Helps Sainsburys Profits Soar

Wed, 15 Nov 2006
 
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The country’s third largest grocery retailer J Sainsbury said its recovery plan is in full swing, reporting pre tax profits of £189 million, a 60 per cent increase.

For almost two years the company has continued to improve sales and its market share growth focusing on the new trend for healthy eating across the country .

Chief Executive of Sainsbury’s, Justin King said the company’s focus on fresh and healthy food, the subject of a high profile advertising campaign fronted by celebrity chef Jamie Oliver, had inspired customers to return and put different products into their baskets .

Mr King said in a statement, "We have made good progress during the first six months of the year, reporting our seventh consecutive quarter of like for like sales growth, our best performance for many years.

"A good performance on food together with good performances from online and non food have driven higher sales densities, which are up 5.6 per cent," he continued.

The chain has now beaten its planned sales target of £2.5 billion for the ‘Making Sainsbury's Great Again’ campaign, delivering £1.3 billion additional sales after 18 months. Total sales came in at 9.6 billion pounds.

To add to the success, web sales have increased significantly and the company now takes around 60,000 orders each week online.

Keeping focus on the busy times ahead, Sainsbury's admitted the market will remain ‘highly competitive’ as it faces higher energy costs and tougher sales comparatives over the next six months.

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