Sainsbury accelerates sales in second quarter

5th Oct 2011 07:02

Sainsbury announced on Wednesday that total sales in the first half grew by 7.6% (+4.3% excluding fuel) in a statement which focused mainly on its confidence in its latest scheme to promote own label ranges.Despite many expecting the supermarket giant to report a weaker second quarter than the first, when sunny weather and the UK royal wedding gave a boost to takings, sales growth actually accelerated. The firm revealed that sales rose by 7.8% in the second quarter (+4.4% excluding fuel), surpassing the 7.3% growth rate seen in the first three months of the year. Like-for-like sales increased 5.4% in the second quarter and by 5.1% in the half. Nevertheless, Sainsbury admitted that "Fuel prices continue to impact customers' disposable income and put pressure on household budgets."Back-to-school sales increased by 40% on last year helping the sales growth in the general merchandise and clothing business to exceed that of the grocery division. Tomorrow will see the launch of a new womenswear collection by fashion stylist Gok Wan. Meanwhile, the convenience business grew 20%, with the group opening its 400th store in the second quarter.Sainsbury remains confident in its newly launched 'Live Well For Less' scheme, which includes the re-launch of its 'by Sainsbury's' range, offering customers "the same or better quality as the branded equivalent at prices typically at least 20% lower, with no compromise on the values our customers trust". In the second quarter, Sainsbury added 390,000 square feet of gross new space by the opening of four supermarkets, 12 extensions and 24 convenience 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," the firm said.BC