Sainsbury(J) PLC
23 June 2005
23 June 2005
First Quarter Trading Statement for 12 weeks to 18 June 2005
J Sainsbury plc today reports its first quarter trading statement for the 12
weeks to 18 June 2005.
Highlights
• Total sales for quarter one up 5.7 percent (5.3 percent excluding petrol)
(1)
• Like-for-like sales, for quarter one up 1.9 percent (1.3 percent excluding
petrol) (1)
• Continuing improvement in product availability and price position
Justin King, chief executive, said: 'We are encouraged by our trading
performance in the first quarter of this financial year which shows sustained
underlying sales growth. Given the more difficult and competitive grocery
retail market over the past three months, like-for-like sales of 1.3 percent (2)
represents continued progress. We are also pleased that independent industry
measures (3) now show our market share is growing.
'We have seen further progress in restoring the appeal of our brand and
customers continue to react positively to the changes they see in our stores.
Supermarket deflation has continued, albeit at a lower level than we saw in the
fourth quarter of last year.
'We have now been investing in lowering our prices for just over a year. At the
same time we have enhanced product quality and significantly improved
availability as we strengthen the Sainsbury's brand and rebuild our traditional
areas of competitive advantage. Customers are increasingly seeing the benefit
of our better availability as we improve the in-store experience.
'In particular our focus on fresh and healthy food has been communicated through
our recent advertising campaign and the ongoing success of our Active Kids
programme. The latter is a great example of how customers have readily
re-engaged with Sainsbury's as they see improvements and identify with the
values that are integral to our brand. We now have over 25,000 UK schools
registered in the programme. In addition, we have announced today that we have
been chosen by Comic Relief to be the key sponsor of the biennial Red Nose Day
and Sport Relief campaigns. This is part of a new six year deal which starts
with Sport Relief in July 2006 and runs until 2011. We are delighted we have
been able to make a long-term commitment to Comic Relief and we are particularly
pleased to be linking up with Sport Relief. Alongside our Active Kids
programme, it is well suited to our commitment to promote a healthier lifestyle
for customers and colleagues and support local communities.
'We are implementing the plans outlined in October 2004 and our progress is
encouraging. While we expect the market to remain highly competitive we will
keep doing the right thing for our customers. This is the most effective way to
continue our progress in making Sainsbury's great again.'
Notes:
1. Growth rates have been Easter adjusted
2. Excluding petrol
3. As measured by TNS on a 12 weekly basis.
4. Sales growth for Q1 2005/06 inc petrol (%) exc petrol (%)
Total 5.7 5.3
Lfl 1.9 1.3
Lfl inflation / (deflation) 0.1 -1.1
5. We will be holding a conference call for analysts and investors at 9:00am.
To listen to the webcast of this call, we recommend you register in
advance. Please visit www.j-sainsbury.co.uk prior to the event and follow
the on-screen instructions. Alternatively, visit the website by 8:30 GMT
23 June 2005, and follow the on-screen instructions. An archive of this
event will be available from 12:00 GMT on the day in the form of a delayed
webcast.
6. The AGM will be on 13 July 2005.
Enquiries:
Investor Relations Media
Lynda Ashton Pip Wood
+44 (0) 20 7695 7162 +44 (0) 20 7695 6127
This information is provided by RNS
The company news service from the London Stock Exchange
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