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Sainsbury's records a solid first quarter across all channels


Edward Perkins / Retail Gazette 

Big four grocer Sainsbury's recorded positive results across all channels in the 12 weeks to 4 June 2016. It's clothing division, the introduction of vinyl records and the scrapping of its brand match for lower everyday prices largely aided the supermarket chain's progress.  

Total retail sales grew by 0.3% and were down 0.1% including fuel. Like-for-like retail sales fell by 0.8% and 1.0% including fuel.

The chain's clothing division continued to perform well with sales up nearly 5%, with menswear showing particularly strong growth in the quarter. This was sparked by the latest football inspired range ahead of this month's 2016 UEFA European Football Championship.

General merchandise sales also increased by over 5%. After 25 years, Sainsbury's brought back vinyl records, and is currently the biggest vinyl retailer on the high street, with 8% of market share.

Further, ecommerce sales also picked up over the quarter rising by over 8% and nearly a 13% increase in orders. The grocer's new online app was also launched this quarter which gave customers more of a choice as to  how they carry out their shopping.

Sainsbury's' convenience estate grew by seven stores and achieved a sales growth of over 6%.

 “We have made a solid start to the year with like-for-like transaction growth across all our channels and total volume growth. Customers continue to shop with Sainsbury's, knowing we will deliver on our commitment to provide great quality products and services at fair prices, whenever and wherever they wish to shop" said Mike Coupe, Sainsbury's Chief Executive.

“Sainsbury’s is well-positioned. Our core food business offers customers choice, quality and a clear value proposition. General merchandise and clothing continue to perform well with good sales growth across both businesses, and we continue to see encouraging results from Sainsbury’s Bank, a significant opportunity for long-term growth.

“Market conditions remain challenging. Food price deflation continues to impact our sales and pressures on pricing mean the market will remain competitive for the foreseeable future. However, we are confident that our strategy to be a trusted multi-channel, multi-product and services retailer is delivering and will enable us to continue to outperform our major peers.”

Published on Wednesday 08 June by Talya Misiri

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