Sainsburys delivers second quarter sales rise

Thu, 06 Oct 2011
 
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Sainsbury's has reported a good sales performance in a tough consumer environment, following success with its fashion and own-label lines and its convenience stores.

The supermarket chain’s like-for-like sales rose 1.9 per cent, excluding fuel, in the 16 weeks to October 1, with overall group sales up 4.4 per cent (8 per cent including fuel).

The results mark a slight improvement from its first quarter figures and come after rival Tesco revealed a 0.9 per cent fall in like-for-like sales for the three months to August 27, although unlike Sainsbury’s its figure excluded VAT.

Sainsbury's chief executive Justin King said general merchandise and clothing continued to perform well, with sales "well ahead" of the main grocery business. The retailer is set to expand its clothing range with the launch of a new womenswear collection by fashion stylist Gok Wan.

Trading at its 400-plus convenience stores grew by 20 per cent, with like-for-like sales stronger than in its larger supermarkets, underlining the growing trend for grocery shopping at local stores. A total of 24 new c-stores were opened in the quarter, in addition to 4 new supermarkets and 12 store extensions.

King also revealed that results in the quarter were helped by several initiatives, including the launch of its ‘Live Well For Less’ promotion, the July home products promotion event, and the relaunch of the "by Sainsbury’s" own-label range, which saw 3,000 new or improved lines introduced throughout its stores.

"We expect the market environment to remain very competitive for the foreseeable future but we are confident in our ability to grow by doing a great job for our customers," said King.

"Through our unique combination of high quality own label ranges and commitment to delivering value we will continue to help our customers 'Live Well For Less'."

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