Sainsbury(J) PLC
24 October 2001
J Sainsbury plc. - Second Quarter Trading Statement
J Sainsbury plc, the major UK and US food retailer, today issued its second
quarter trading statement for the 16 weeks to 13th October 2001, ahead of the
Group's Interim results which will be announced on 21st November 2001.
Sainsbury's Supermarkets
* Third consecutive quarter of strong like-for-like sales growth.
* Total sales up 7.7%, with like- for-like sales up 6.0% (excluding petrol)
* Additional £100m invested in pricing totalling £250m for year to date,
backed by targeted promotional activity to offer customers better value.
Significant progress on store reinvigoration programme
* 36 stores refurbished and 3 stores extended in the second quarter, bringing
a total of 50 stores refurbished and 4 stores extended for the first half.
* Will maintain store reinvigoration momentum in second half of year.
* Sales uplifts remain strong.
Transformation programme on track
* Confident of achieving £150m cost savings target for year.
Shaw's (US) -Sales momentum continues into Q2
* Total sales in the quarter up 9.4%, with like-for-like sales growth of 5.0%
* Continued improvement in supply chain efficiencies
Sir Peter Davis, group chief executive, said: 'We are very pleased that our
sales for this quarter are up 7.7% with like-for-like sales up again by 6%.
This is the third consecutive quarter where total sales uplifts are
significantly better than in previous years and exceed industry averages.
'Our success in growing sales volumes shows that our First for Food strategy
is working. We are offering our customers outstanding quality and great
service at competitive prices. These increased volumes combined with our
efficiency programme and cost savings will enable us to increase shareholder
returns for the future.
'I am particularly pleased to note the tangible results we are experiencing
from our investment in delivering great service. Availability has increased,
queues are reduced and customer numbers continue to grow. The results of our
independent mystery shopper surveys show an encouraging improvement in
customer satisfaction levels.
'In this second half we are enhancing our customer offer by investing a
further £100m in pricing; this brings the total for the year to date to £250m.
Our 'Making life taste better for less' campaign launched this autumn offers
significant reductions in price, and a strong range of targeted promotions.
We have brought together our quality and value messages to ensure that
Sainsbury's is well placed for the important pre Christmas trading period.
'This quarter we have refurbished 36 stores, 22 stores more than the 14 we
achieved during the previous quarter. These re-invigorated stores provide
a step change in our offer and customer feedback tells us that satisfaction
levels are high. We have a better understanding of consumers' various
specific requirements and this is helping us to devise a range of store
formats. We believe that this increased understanding of customers' shopping
needs will give us the opportunity to satisfy them better; this will provide
the platform for our future success.
'Shaw's continues to move from strength to strength with total sales growth of
9.4% including additional sales realised from the 18 Grand Union stores we
acquired in March 2001. Like-for-like sales growth was up 5.0%, a good
improvement over the first quarter, and sales have remained strong in recent
weeks.
'I remain confident that we are on track to deliver on the targets we have set
ourselves for this year, and that our three year transformation programme will
ensure a sustainable recovery of the business.'
Unaudited Q2 sales
Sainsbury's Supermarkets Shaws
Excl. Petrol Inc. Petrol
Q2 2001 Q2 2000 Q2 2001 Q2 2000 Q2 2001 Q2 2000
Like for like sales
growth (%) 6.0 0.6 5.3 1.8 5.0 (1.1)
Net new space added (%) 1.7 2.3 1.8 2.7 4.4 (2.7)
Total sales growth (%) 7.7 2.9 7.1 4.5 9.4 (3.8)
*Sainsbury's Supermarket's inflation in Q2 was (0.1)% including petrol, and
1.5% excluding petrol.
The Group's interim results will be published on 21st November 2001.
For enquiries:
Investor Relations:
Sainsbury Roger Matthews 020 7695 6025
Jennifer van der Eem/ Katie Lang
Media:
Sainsbury Jan Shawe 020 7695 6469
Pip Wood 020 7695 6329
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