Sainsbury posts good sales performance in challenging market

Total sales were up for the first quarter by 3.6 %, (3.8 per cent excluding fuel), continued strong growth was seen in the convenience sector and online. Like-for-like sales for first quarter up 1.4 per cent (1.4 per cent excluding fuel)

Justin King, Chief Executive, said: "We have delivered good sales growth in the quarter, in line with our expectations, helping our customers to manage both their weekly budgets, and to celebrate special occasions. Over the quarter we maintained our outperformance of the market with 1.4 per cent like-for-like growth.

"Customers continued the habit of savvy shopping to save money in order to be able to treat themselves on special occasions, shown by strong sales in the lead up to the Jubilee celebrations. Just as in 2011, the quarter was characterised by five bank holidays, a royal event and periods of unseasonal weather. Consistent performance year-on-year puts our two year like-for-like sales growth at 3.3 per cent.

"Our own label ranges are leading the way in helping customers to Live Well for Less, with the relaunch of by Sainsbury's now 75 per cent complete. Over 70 per cent of these products are completely new or redeveloped.

"We are gaining market share in our core general merchandise and clothing categories. Non-food continues to grow faster than food, and the quarter saw the strongest ever sales week on clothing. In particular, the fourth collection of our Gok for TU womenswear looks set to be our most successful to date.

"Our convenience stores continue to be a strong driver for growth for the business, achieving year-on- year sales growth of 16 per cent. Our online business grew by over 20 per cent, with an improved website enabling customers to order easily from handheld devices while on the move.

"We grew space in line with our plans, adding 63,000 sq ft of gross space to our estate through the opening of 21 convenience stores and one extension. We also refurbished eight stores over the quarter.

"Looking forward, we expect the market to remain competitive. Universal appeal, supported by market leading own label ranges, Brand Match and loyalty insight, ensures we help our customers to Live Well for Less. We remain well placed to continue to outperform the market."