Sainsbury Plc Posts Sales Growth

Wed, 11 Oct 2006
 
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The supermarket chain Sainsbury Plc. reported an overall sales growth of 7.6 per cent including petrol and 8 per cent excluding it. The company also announced a seventh consecutive quarter of sales growth with an increase of 6.6 per cent (excluding petrol sales) in the second quarter that ended 7 October.

Justin King, the Chief Executive of the retailer said the company continued on its good sales performance during the quarter and benefited from good weather and the focus it had placed on fresh and healthy food .

He continued by saying the quarter had experienced pressure from rising energy, commodities and fresh produce prices but that firm's price rise in grocery had been lower than the overall market rate of 1 per cent.

The Company had been predicted an average second quarter sales growth of 6.1 per cent, and total sales of 8.2 per cent by analysts. Even though Sainsbury’s revival is on schedule it is expected to face stiff competition in the third quarter. The increase in sales growth is due to a number of reasons, one of which has been Sainsbury’s store changes. Five stores have been extended, one cut back and a further 32 have been refurbished during the first half. Seven new stores have also been opened with five more being planned for launch around Christmas .

Sainsbury has also had an additional 250 new products for sale in all their stores, taking the total number of products to 1,100. Their shares lost 0.8 per cent and traded at 387.8 pence.

Meanwhile the UK’s number one grocer, and main rival, Tesco Plc, had reported 6.6 per cent growth for a similar period, while William Morrison Supermarkets Plc had a growth of 5.9 per cent.

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