Trading Statement

RNS Number : 4461I

Sainsbury(J) PLC

15 June 2011

 



15 June 2011

First Quarter Trading Statement for the 12 weeks to 11 June 2011

Solid sales performance in a challenging market

·    Total sales for first quarter up 7.3 per cent (4.3 per cent excluding fuel)¹

·    Like-for-like sales for first quarter up 4.8 per cent (1.9 per cent excluding fuel)¹

·    Strong customer growth - weekly transactions up 5 per cent to 22 million²

Justin King, Chief Executive, said, "We've delivered a solid sales performance, in line with our expectations, in spite of the continued tough consumer environment. Fuel price inflation combined with strong fuel volume growth resulted in an increase in total sales of 7.3 per cent, with like-for-like sales up 4.8 per cent. Excluding fuel, total sales were up 4.3 per cent, with like-for-like sales up 1.9 per cent."  

Despite the tough economic conditions our customers celebrated Easter, the Royal Wedding and the glorious weather in April, playing to our strength of supporting family occasions. We sold nearly 300 miles of bunting, 159,000 flags and 49,000 mugs. Hot cross bun sales increased 29 per cent and we sold the most champagne we have ever sold outside of Christmas.

While demonstrating a willingness to treat themselves on these family occasions, our customers continue to manage their spend carefully.  The increase in fuel costs is placing further pressure on consumer disposable income.  One way our customers are keeping the cost of their shopping low is through buying Sainsbury's own label ranges. Our three key own label ranges, basics, by Sainsbury's, and Taste the Difference, all saw volume and sales growth in the period. Basics is our fastest-growing brand, and is now number two in the value market with 22.3 per cent market share.³  At the end of the quarter we had re-launched over 1,500  products from our core own label range, by Sainsbury's, of which almost 80 per cent are either new or improved.  Since its relaunch in September Taste the Difference has gone from strength to strength, winning eight gold awards at the Grocer Own Label Food & Drink Awards, making Sainsbury's the most successful retailer with twelve gold awards in total.

We continue to find new ways to help our customers, and in the quarter we launched our new Feed Your Family for £50 meal planner, which provides a family of four with 21 tasty and nutritious home cooked meals. Customer response has been very positive and since the launch in May over one million customers have logged on to the website to learn more.  Products featured in the planner have seen sales and volume uplifts of over 20 per cent. 

Our general merchandise and clothing offer grew faster than food, despite a very tough market.  This quarter we celebrated our biggest childrenswear sales week ever, and were the number one retailer for The King's Speech DVD, where we achieved a record market share of 34 per cent in the week of its release.

The convenience business grew at 20 per cent, underpinned by strong like-for-like growth, and our groceries online business grew at over 20 per cent.  General merchandise online continued to grow strongly, supported by the accelerated roll-out of the Click & Collect service to a further 240 stores, including convenience stores.  This brings the total Click & Collect stores to 400, a big step towards our objective of 800 stores by Christmas. 

We grew space in line with our plans, opening two new supermarkets, one replacement, three extensions and 13 convenience stores, in total adding 209,000 sq ft of gross space to our estate.⁴  We continue to extend our offer successfully to new customers across the UK, with a replacement store in Wakefield and extensions to stores in Cardiff, Scunthorpe and Ballymena, illustrating the universal customer appeal of the Sainsbury's brand. 

The market environment remains very competitive, reflecting the challenging economic backdrop. We expect this to be the case throughout the year.  Sainsbury's will continue to help our customers to manage their weekly spend and still enjoy great quality products, whilst at the same time investing for future growth in space, non-food and our online business.

Enquiries:
Investor Relations	Media
Erica Judge	Mark Rigby/Ben Crowther
[phone]	[phone]

 

 

 

Notes

1.   All sales figures contained in this trading statement are stated including VAT and in accordance with IFRIC 13.

2. Average weekly customer transactions in the 12 weeks ending 11 June 2011 compared to previous year (12 weeks  ending 13 June 2010).

3.  Kantar Worldpanel Total Grocery 12 w/e data to 15 May 2011.

4.  Total net space added was 172,000 sq ft.

5. 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.

6. Sainsbury's also released today its First Quarter Corporate Responsibility update and this is available at www.j-sainsbury.co.uk/news.

7. A conference call will take place at 8:45am.  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 and follow the on-screen instructions of the first quarter trading statement section.

8. Sainsbury's will report its 2011/12 Second Quarter Trading Statement at 7:00am on 5 October 2011.

9. Sainsbury's 2011/12 Third Quarter Trading Statement will reflect the 14 weeks ending 7 January 2012 and its 2011/12    

     Fourth Quarter Trading Statement will reflect the 10 weeks ending 17 March 2012.

 

END

 

 

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