Sainsbury's Post 13 Per Cent Rise In First Half Profits

Wed, 12 Nov 2008

Sainsbury's has reported a 13 per cent rise in first-half profits for the year despite the current economic turmoil.

The supermarket group hailed its "universal customer appeal" as it reported a 3.9 per cent rise in like-for-like sales, excluding fuel, for the six months to 4 October.

Total sales were up 7.6 per cent to £10.8bn, pushing pre-tax profits up 13.3 per cent (on the same period last year) to £272m for the first half of 2008.

The profit figures were towards the top end of analysts' forecasts, which ranged from £260m to £275m.

Some analysts had expected the retailer to suffer in the economic downturn as it has traditionally been associated with higher-price, and higher-quality goods, than many of its rivals.

However, the UK's third largest supermarket chain has responded to the worsening economic conditions with the launch of a new marketing drive for its own-brand goods .

Sainsburys chief executive Justin King said the supermarket chain, which currently pulls in around 18 million customers a week, had made considerable progress in the last four years.

"We've focused on improving our pricing, we've introduced our basics range which means that shoppers who are looking for grams-per-penny value for money can shop in our stores as well," he explained.

"Customers are changing their shopping within our stores, they don't have to go elsewhere to get what they need."

He added that the company has benefited from an influx of shoppers that have been put off by the high prices associated with upmarket rivals Waitrose and M&S .