Member Article

Sainsbury’s report “outperformance” in sales

Supermarket Sainsbury’s has posted sales increases of 4.3% for the second quarter, while like-for-like sales were up 1.9%.

The company said it had outperfomed, particularly through the success of its own-label ranges, as the “by Sainsbury’s” range grew at its strongest rate in several years and the “Taste the Difference” section reached “double-digit growth”.

Sainsbury’s joined other supermarkets such as Asda with a “Brand Match” scheme this year, which the store said maintained competitiveness through price positioning.

Non-food items outsold food sales by approximately 300%, while jeans sales almost doubled year-on-year after the store launched a “Denim Shop” format.

Over the last quarter the business opened five new supermarkets, 28 convenience stores and extended two existing sites to add 267,000 sq ft of space.

The company also won its fifth Supermarket of the Year award at the Retail Industry Awards, alongside it’s third Convenience Store of the Year prize, and a further three awards.

Justin King, Chief Executive, said, “This has been a unique and special summer, during which we have delivered another quarter of good sales, outperforming the market in what remains a challenging retail environment. Our total sales are up 4.3 per cent, and like-for-like sales up 1.9 per cent.”

Looking forward, Mr King added: “We expect the challenging economic backdrop to persist, but by helping our customers to Live Well For Less through competitive pricing, targeted promotions, quality own label products, and outstanding customer service, we are positioned to perform well coming into the important Christmas period.”

Cliona Lynch, senior analyst at Verdict suggested ‘Brand Match’ is driving home the supermarket’s Live Well for Less message among the shoppers.

She said: “The instant coupon-at-till refund reassures Sainsbury’s shoppers that there is no need to switch away. ASA’s (Advertising standards authority) ruling on Brand Match, which relates to advertising now almost a year old and no longer in use, will not hamper the resonance of the message with customers.”

This was posted in Bdaily's Members' News section by Miranda Dobson .