Trading Statement

Sainsbury(J) PLC 10 October 2007 10 October 2007 Second Quarter Trading Statement for 16 weeks to 6 October 2007 Highlights • Total sales for second quarter up 3.8 per cent (4.7 per cent excluding fuel) • Like-for-like sales for second quarter up 2.6 per cent (3.1 per cent excluding fuel) • Eleventh consecutive quarter of like-for-like sales growth • Like-for-like sales for the first half up 3.3 per cent (4.0 per cent excluding fuel) Justin King, chief executive, said: 'We are pleased to report that like-for-like sales in the second quarter, excluding fuel, grew by 3.1 per cent. This result represents strong sales growth in a quarter with some very tough comparatives, particularly during the first six weeks where exceptionally warm weather helped to deliver additional growth across the business last year. Our two-year like-for-like growth remains at around ten per cent, building on the excellent results delivered last year. Total sales for the second quarter, excluding fuel, grew by 4.7 per cent as we continued to outperform the grocery market. (1) 'Growth in customer transactions continues to drive an increase in customer spending. Volumes remained strong over the first half as we delivered like-for-like sales growth, excluding fuel, of 4.0 per cent, in line with our expectations for the current year. 'We maintained our competitive position during the quarter reducing prices on another 7,000 products and also reinforced our strong heritage in quality products, launching our 'Different Values' campaign. We are proud to announce today that our entire range of own-brand tea will become 100 per cent Fairtrade over the next three years. This will make Sainsbury's the UK's biggest Fairtrade tea retailer and will triple Fairtrade tea sales in the UK. This is of a similar and significant scale as the conversion of all our bananas to Fairtrade, which was completed during this quarter. It will create an increased return of around £2 million each year for developing countries. The first tea to be converted will be Sainsbury's Red Label tea, a 100-year-old brand, which still comes from the same supplier over a century later. 'We were delighted to be named 'Supermarket of the Year' for the second year running at the Retail Industry Awards last month. (2) In winning this award we were acknowledged by the judges for being 'at the leading edge of food'. We also received awards highlighting the achievements we have made within our fresh produce, seafood and beers, wines and spirits offering. 'We are increasing the capacity of our supply chain, enabling us to deliver greater operational flexibility and meet future volume growth. Our new depot in Northampton will open later this month. The depot is the UK's most energy efficient distribution centre using half the energy of similar buildings. The environmental initiatives at the site include its own power plant providing a significant proportion of the electricity required for the depot and rainwater collection which will reduce water consumption by half. 'As announced last week, we will be relocating our store support centre to Kings Cross in London from early 2011. This move is driven primarily to remove unnecessary cost within the business and the transfer will significantly reduce our central office costs from 2011/12. The building will boast some impressive environmental credentials which support our aim to reduce energy use across our business. 'We have delivered a good first half sales performance in line with our expectations for the current year despite the poor summer weather. The market remains competitive but our business continues to operate from a strong position, delivering growth and operational improvements each quarter. We remain ahead of our Making Sainsbury's Great Again three-year target to grow sales by £2.5 billion by March 2008, having now delivered £2.3 billion of additional sales and we are confident in our ability to deliver the new space and sales growth targets which we outlined in May 2007.' Enquiries: Investor Relations Media Elliot Jordan Pip Wood +44 (0) 20 7695 4931 +44 (0) 20 7695 6127 Notes (1) Based on TNS total grocers on a 12 week period to 9 September 2007. (2) Announced on 27 September 2007 at the 2007 Retail Industry Awards. (3) 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. (4) A conference call will take place at 8.45am 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 12 October 2007. (5) Sainsbury's will announce its interim results on 14 November 2007. (6) Sales results for the year to date: 2007/08 Q1 Q2 H1 Sales growth including petrol (%) Total 5.7 3.8 4.7 Lfl 4.4 2.6 3.3 Sales growth excluding petrol (%) Total 6.7 4.7 5.7 Lfl 5.1 3.1 4.0 This information is provided by RNS The company news service from the London Stock Exchange
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