Sainsbury's sales up despite bad weather

10-10-2007

Sainsbury's sales up despite bad weather
Supermarket group Sainsbury's has reported an eleventh consecutive quarter of like-for-like sales growth, despite this summer's bad weather.

In a trading statement today the retailer revealed that its like-for-like sales in the second quarter climbed by 2.6 per cent, or 3.1 per cent excluding fuel.

Total sales for the 16 weeks to October 6th were up 3.8 per cent, or by 4.7 per cent excluding fuel.

Sainsbury's said it was able to maintain its competitive position over the quarter by reducing prices on 7,000 products and emphasising its commitment to quality products, specifically through the launch of its Different Values campaign – aimed at highlighting the supermarket's green credentials.

The company also revealed that it intends to make its entire range of own-brand tea 100 per cent fairtrade over the next three years, a move which it claims will make Sainsbury's the UK's biggest fairtrade tea retailer.

Sainsbury's, which said it was "delighted" to be named supermarket of the year at an industry awards ceremony last month, added that it was also increasing the capacity of its supply chain to foster future volume growth. The retailer is to open a new depot in Northampton later this month.

Meanwhile the supermarket chain stressed that it remained ahead of the sales target set out in its three-year recovery plan. Under the Making Sainsbury's Great Again initiative the retailer is seeking to grow sales by £2.5 billion by March 2008, but says it has already delivered £2.3 billion of additional sales.

Commenting on the company's recent performance Sainsbury's chief executive Justin King said: "We have delivered a good first-half sales performance in line with our expectations for the current year despite the poor summer weather.

"The market remains competitive but our business continues to operate from a strong position, delivering growth and operational improvements each quarter."

Sainsbury's did not provide an update on its discussions with Qatari-based investment firm Delta Two, which has tabled a proposed bid of £10.6 billion for Britain's third-largest supermarket group.

Last month Sainsbury's agreed to open its books to the prospective buyer, which already holds a 25 per cent stake in the retailer.

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