Sainsbury(J) PLC
28 March 2007
28 March 2007
Fourth Quarter Trading Statement for 12 weeks to 24 March 2007
• Total sales for quarter four up 6.6 per cent (7.8 per cent excluding fuel)
• Like-for-like sales for quarter four up 4.9 per cent (5.9 per cent excluding
fuel)
• Second year of recovery plan completed with strong momentum
Justin King, chief executive, said: 'We have now completed the second year of
our Making Sainsbury's Great Again recovery plan and have delivered strong sales
growth in our fourth quarter, the ninth consecutive quarter of growth.
Like-for-like sales excluding fuel were up 5.9 per cent, slightly ahead of our
expectations as we continued to grow market share in a strong market (1). As
expected, grocery inflation continued throughout the quarter and was recorded at
2.3 per cent. We continue to maintain our competitive price position and
reduced prices on over 1,000 products in the quarter.
'We provided customers with a strong product offer for key events such as
Valentine's Day and Mother's Day which drove the sales performance. Our
participation in Red Nose Day on March 16 accounted for an estimated 0.3 per
cent of our sales growth in the quarter and as a result of the generosity of our
customers and colleagues we were able to donate over £7 million to Comic Relief.
'Our store extensions, new stores and refurbishments performed strongly during
the quarter, exceeding our sales expectations. We opened five new supermarkets,
including two replacement stores and one acquisition, as well as completing two
extensions. We also opened a net five new convenience stores. Additionally, we
refurbished 11 supermarkets and added our complementary non-food range to
another five supermarkets.
'Sales of Fairtrade products grew by 50 per cent during the quarter. We have
now converted 75 per cent of our bananas to Fairtrade as such products are
becoming an increasingly important part of the weekly shop for our customers.
Fairtrade fortnight at the beginning of March enabled us to increase our focus
on fairly traded products. During these weeks sales grew 150 per cent compared
to the previous year.
'Consumer focus on eating a healthier and balanced diet is traditionally
stronger in this quarter, following the Christmas period. Our 'Big 5 drive',
launched in January, was designed to help people eat five portions of fruit or
vegetables a day and over four weeks we gave away three million portions of
fruit and vegetables. Our Wheel of Health multiple traffic light labelling,
first introduced over two years ago, has been added to our basics range and is
now on over 4,500 products. Customers have told us that the traffic light
system is the easiest way to make decisions about the food they buy.
'Our third Active Kids programme launched in February. We have already donated
£34 million of sports equipment since 2005 and this year Scouts and Girl Guides
join the 32,500 schools and nurseries across the UK that are accepting vouchers.
We have added camping gear, cookery equipment and discounts on group
activities such as abseiling and canoeing to the catalogue of rewards available.
'Today we are announcing that we have renewed the contract for our participation
in the Nectar customer loyalty programme. Customers value the rewards they are
able to collect through this multi-partner loyalty scheme and the contract
renewal allows us to continue to improve our relationship with our customers.
We're also broadening our relationship to enhance our ability to use the data
for the benefit of customers.
'We are committed to delivering the Making Sainsbury's Great Again recovery plan
as announced on 19 October 2004 and believe this strategy is delivering
substantial value for our shareholders. As we enter the third year of the plan,
we are confident that we can continue to build upon this recovery.'
Enquiries:
Investor Relations Media
Elliot Jordan Pip Wood
+44 (0) 20 7695 4931 +44 (0) 20 7695 6127
Notes
(1) As measured by TNS on a 12 weekly basis compared with the previous
year.
(2) 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.
(3) Sales growth is detailed below:
2006/07 Q1* Q2 H1* Q3 Q4 H2 FY*
Sales growth including fuel (%)
Total 8.1 7.6 7.8 5.8 6.6 6.2 7.0
LfL 7.1 6.5 6.8 4.2 4.9 4.6 5.7
Sales growth excluding fuel (%)
Total 6.7 8.0 7.5 6.8 7.8 7.3 7.4
LfL 5.7 6.6 6.2 5.0 5.9 5.4 5.9
*Q1 Easter adjusted. First half total sales growth of 8.3%, including fuel.
Full year total sales growth of 7.3%, including fuel.
(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 30
March 2007.
(5) Sainsbury's will announce its preliminary results for the 52 weeks ending
24 March 2007 on 16 May 2007.
This information is provided by RNS
The company news service from the London Stock Exchange
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Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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