Sainsbury’s Reports Solid Sales Performance, Growth in Own-label

Like-for-like sales for first quarter up 4.8 per cent (1.9 per cent excluding fuel). Strong customer growth was reported with weekly transactions up 5 per cent to 22 million.

6/15/2011 --- Sainsbury’s has reported that total sales for first quarter were up 7.3 per cent (4.3 per cent excluding fuel). Like-for-like sales for first quarter up 4.8 per cent (1.9 per cent excluding fuel). Strong customer growth was reported with weekly transactions up 5 per cent to 22 million.

Justin King, Chief Executive, said, "We've delivered a solid sales performance, in line with our expectations, in spite of the continued tough consumer environment. Fuel price inflation combined with strong fuel volume growth resulted in an increase in total sales of 7.3 per cent, with like-for-like sales up 4.8 per cent. Excluding fuel, total sales were up 4.3 per cent, with like-for-like sales up 1.9 per cent."

Despite the tough economic conditions customers celebrated Easter, the Royal Wedding and the glorious weather in April, “playing to our strength of supporting family occasions.” The retailer sold nearly 300 miles of bunting, 159,000 flags and 49,000 mugs. Hot cross bun sales increased 29 per cent and we sold the most champagne we have ever sold outside of Christmas.

While demonstrating a willingness to treat themselves on these family occasions, customers continue to manage their spend carefully. The increase in fuel costs is placing further pressure on consumer disposable income. One way that customers are keeping the cost of their shopping low is through buying Sainsbury's own label ranges. The company reported that three key own label ranges, basics, by Sainsbury's, and Taste the Difference, all saw volume and sales growth in the period. Basics is the fastest-growing brand, and is now number two in the value market with 22.3 per cent market share. At the end of the quarter the retailer had re-launched over 1,500 products from its core own label range, by Sainsbury's, of which almost 80 per cent are either new or improved. Since its relaunch in September Taste the Difference has gone from strength to strength, winning eight gold awards at the Grocer Own Label Food & Drink Awards, making Sainsbury's the most successful retailer with twelve gold awards in total.

“We continue to find new ways to help our customers, and in the quarter we launched our new Feed Your Family for £50 meal planner, which provides a family of four with 21 tasty and nutritious home cooked meals. Customer response has been very positive and since the launch in May over one million customers have logged on to the website to learn more. Products featured in the planner have seen sales and volume uplifts of over 20 per cent,” the retailer reported.