Sainsbury(J) PLC
20 June 2007
20 June 2007
First Quarter Trading Statement for 12 weeks to 16 June 2007
Highlights
• Total sales for first quarter up 5.7 per cent (6.7 per cent excluding fuel)
• Like-for-like sales for first quarter up 4.4 per cent (5.1 per cent
excluding fuel)
• Tenth consecutive quarter of like-for-like sales growth
Justin King, chief executive, said: 'We have made a strong start to the third
year of our Making Sainsbury's Great Again plan. In the first quarter
like-for-like sales excluding fuel were up 5.1 per cent, our tenth quarter of
continuous sales growth. This is particularly pleasing as the quarter included
some very tough comparatives in the final few weeks driven by the football world
cup and the very warm weather last June. Both of these factors also impact the
quarter two comparatives.
'Our ability to control stock levels and improve availability during an
exceptionally warm April followed by a very wet May highlights the improvements
we've made to our supply chain systems and in store operations over the past
couple of years.
'Total sales growth continues to be driven by our strong quality food offer.
Our ongoing growth in market share (2) reflects the significant improvements
we've made to the shopping experience of our customers over the first two years
of our recovery. Although small by comparison, non-food sales continue to grow
in line with our expectations as we continue to develop this offer.
'Customers value fresh, healthy and tasty products which have been sourced with
integrity. These factors are of increasing importance to consumers today and we
continue to see growth in sales of organic and Fairtrade products. Customers
understand that they can buy quality food at fair prices at Sainsbury's as
demonstrated by us selling Fairtrade bananas at the same price our competitors
sell conventional bananas. By August we expect that every banana sold in
Sainsbury's will be Fairtrade.
'In April our first 'Make the difference' day raised the issue of plastic bag
usage. Our 'Make the difference' programme is based on the principle that
individual contributions can be combined to effect big change. On the first two
days of the programme we issued around ten million free 'bags for life', saving
an estimated 520 million standard disposable bags this year alone.
'In May we completed the third year of our Active Kids programme. Customers
collected vouchers towards new sports equipment for schools, Scouts and Guide
groups. We have donated over £34 million worth of sports equipment over two
years and this year's programme will add substantially to that total.
'The operating environment remains competitive, which has been reflected in
recent activity across the market. We have reduced prices on another 4,500
products since April and invested over £450 million in improving the customer
offer since March 2005. We will continue to maintain our competitive price
position with our commitment to invest 100-150 basis points annually in the
customer offer.
'Our sales and operational performance this quarter represents continued
progress towards our Making Sainsbury's Great Again targets. As outlined at our
Preliminary results in May, the business is in a strong position to grow and we
have set out new plans for further sales and space growth. These provide
Sainsbury's with substantial opportunity for further development of the business
and value creation for our shareholders.'
Enquiries:
Investor Relations Media
Elliot Jordan Pip Wood
+44 (0) 20 7695 4931 +44 (0) 20 7695 6127
Notes
(1) Certain statements made in this announcement are forward looking
statements. Such statements are based on current expectations and are
subject to a number of risks and uncertainties that could cause actual
results to differ materially from any expected future events or results
referred to in these forward looking statements. Unless otherwise required
by applicable law, regulation or accounting standard, we do not undertake
any obligation to update or revise any forward looking statements, whether
as a result of new information, future developments or otherwise.
(2) As measured by TNS on a 12 weekly basis to 20 May 2007 compared with the
previous year.
(3) Sainsbury's will announce its second quarter trading results for 16
weeks to 6 October 2007 on 10 October 2007.
(4) A conference call will take place at 8.45 BST. To listen to the audio
webcast we recommend that you register in advance. To do so please visit
www.j-sainsbury.co.uk prior to the event and follow the on-screen
instructions. To view the transcript of the conference call, go to
www.j-sainsbury.co.uk on 22 June 2007.
This information is provided by RNS
The company news service from the London Stock Exchange
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