Second Quarter Trading Statement for the 16 weeks to 29 September 2012

Sainsbury's colleagues celebrating the Paralympic Games

Good sales delivering continued outperformance.

  • Total sales for second quarter up 4.3 per cent (4.4 per cent excluding fuel)
  • Like-for-like sales for second quarter up 1.9 per cent (1.9 per cent excluding fuel)
  • Total sales for the first half up 4.0 per cent (4.1 per cent excluding fuel) and like-for-like sales up 1.7 per cent (1.7 per cent excluding fuel)

Justin King, Chief Executive, said: "This has been a unique and special summer, during which we have delivered another quarter of good sales, outperforming the market in what remains a challenging retail environment. Our total sales are up 4.3 per cent, and like-for-like sales up 1.9 per cent.

"The quarter began with the period immediately following the Jubilee celebrations, and was characterised by unseasonal weather. The quarter ended with the Olympic and Paralympic Games, which united and inspired the nation. We were delighted to play our part in helping customers celebrate this summer like no other, and are particularly proud of Sainsbury's association with the Paralympic Games.

"We are seeing the benefit of our ongoing investment in our own-label ranges, particularly by Sainsbury's, which is growing at its strongest rate in recent years, and our Taste The Difference range, which is seeing near double-digit growth. Our own label penetration is increasing at a faster rate than any of the major supermarkets; a testament to the investment we have made in the quality of our products.

"As we approach Brand Match's first anniversary, it continues to reinforce the competitiveness of our price position. Our customers tell us that they believe it to be the simplest price guarantee in the market. We have also celebrated the tenth anniversary of our partnership with Nectar which, when uniquely combined with our coupon-at-till technology, helps to ensure that we reward customers with great offers on relevant products.

"Non-food has increased its pace of growth to around three times that of food. Following the successful launch of our Denim Shop format, sales of jeans have almost doubled year-on-year, and the quarter also saw our biggest ever schoolwear season, consolidating our number four market position.

"Convenience stores continue their strong growth. We have opened 49 convenience stores in the half, and are delivering our target of one to two per week. Our online business continues to perform strongly, with growth of over 20 per cent year-on-year.

"Over the quarter we grew space in line with our plans, opening five supermarkets, 28 convenience stores and two extensions, adding 267,000 square feet to our estate. This brings the year-to-date total to 330,000 square feet.

"At the recent Retail Industry Awards we won Supermarket of the Year for the fifth time in seven years, Convenience Store of the Year for the third year in a row, and a further three awards. We are proud that the hard work invested by our colleagues across the country has been so consistently recognised by our peers.

"We expect the challenging economic backdrop to persist, but by helping our customers to Live Well For Less through competitive pricing, targeted promotions, quality own label products, and outstanding customer service, we are positioned to perform well coming into the important Christmas period."

Notes to editors

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

2. Like-for-like sales include the impact of changes in underlying VAT rate and extensions as follows:

 

Q1

Q2

H1

Sales growth inc fuel (%)

 

 

 

Total

3.6%

4.3%

4.0%

Like-for-like

1.4%

1.9%

1.7%

Sales growth ex fuel (%)

 

 

 

Total

3.8%

4.4%

4.1%

Like-for-like

1.4%

1.9%

1.7%

Included in LFL sales (%)

 

 

 

Net contribution from extensions

0.7%

1.0%

0.8%

Impact from change in VAT rate

0%

0%

0%

3. Store investment programme 2012/13:

2012/13

Q1

Q2

H1

Supermarkets

 

 

 

New

0

5

5

Replacements

0

(1)

(1)

Extensions

1

2

3

Refurbishments

8

7

15

Convenience

 

 

 

New

21

28

49

Closures

0

0

0

4. 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.

5. Sainsbury's also released today its Second Quarter Corporate Responsibility update.

6. A conference call will take place at 8:30am. To listen to the audio webcast we recommend that you register in advance. To do so please register prior to the event and follow the on-screen instructions. A transcript of the conference call will be made available later this week.

7. Sainsbury's will announce its 2012/13 Interim Results on 14 November 2012.

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About the article

  • Posted on: 03 October 2012
  • Type of article: Press release

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