Sainsburys’ Q1 Strong as Non-Food Goes Online

UK supermarket Sainsbury’s has reported strong sales growth for the 12 weeks to June 13 with total sales for first quarter up 7.6 percent (excluding fuel) and like-for-like sales up 7 percent (excluding fuel). The business has invested in lower price points on food. Its Tu clothing range recorded its best-ever quarter with a record 1 million transactions in a single week, and its home ranges also grew “strongly” across the quarter.

The business is to launch non-food online in the next quarter comprising around 8,000 products from kitchenware to furniture.

“Providing both quality and value has been central to our brand throughout our 140-year history and remains at the heart of our business,” says Justin King, chief executive officer. “Customers know that saving money at Sainsbury’s does not mean compromising on quality or values. Customer numbers have increased to over 18.5 million a week and basket size has grown as further investment in price and product ranges helps customers get the best value from their weekly grocery shop. Consumers are spending more cautiously but continue to look to trusted brands to act responsibly on ethical and environmental concerns on their behalf. Sainsbury’s continuous innovation gives us a leading position on such issues.”

The retailer plans to grow space by 15 percent, equivalent to some 2.5 million square feet, by March 2011 following a rights issue.

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