Sainsbury’s sees sales pick up
SAINSBURY’S, Britain’s second-biggest supermarket group, saw sales growth accelerate in its latest quarter as it benefited from revamped food ranges and held down prices of staple goods despite rising inflation.
The group cautioned that trading conditions remained tough, however.
Sainsbury’s and major rivals – market leader Tesco, Asda and Morrisons – are grappling with the rapid growth of discounters Aldi and Lidl and having to cope with more expensive food imports because of a fall in the value of sterling since Britain voted to leave the EU.
“The market is competitive, and we continue to manage cost price pressures closely,” chief executive Mike Coupe said yesterday.
But he said Sainsbury’s strategy of building a distinctive food offer ranging from ownbrand “basics” to specialist “free from” and organic lines, growing its general merchandise and clothing businesses, and bearing down on costs was working.
“Sainsbury’s has improved volume growth, while improving their price position in the quarter,” Bernstein analyst Bruno Monteyne said.
The group’s retail like-forlike sales rose 2.3 percent, excluding fuel, in the 16 weeks to July 1, its fiscal first quarter, and growth of 0.3 percent in the previous quarter. – Reuters