The current trend for online and convenience store shopping has helped UK supermarket chain Sainsbury’s to achieve strong growth in sales for its second quarter ending 28 September 2013.
Sainsbury’s announced today that its online grocery business grew by over 15% in the second quarter and its now has annual sales of more than GBP1bn. The group opened 31 convenience stores during the same period and this part of its operations has achieved growth of 20% year-on-year.
Five new supermarkets were also opened during the second quarter, during which like-for-like sales increased by 2% and total sales rose by 4.6%. The company said the growth in sales has also been helped by its own-brand products and its ‘Brand Match’ pricing initiative.
General merchandise and clothing sales continued to grow at over twice the rate of food during the quarter. The company has recently re-launched its Tu clothing brand, which is now available in nearly 400 stores. In addition, Sainsbury’s has entered into a joint venture with Vodafone to launch Mobile by Sainsbury’s, providing value-for-money mobile services with clear and simple tariffs.
Justin King, Sainsbury’s chief executive commented : “We have delivered strong sales over the quarter, continuing to outperform the market in what remains a tough retail environment. We are the only major supermarket to be growing market share. This comes during a quarter in which we also lapped some of our strongest performance during the Paralympic Games last year.”
“We continue to focus on delivering great service and availability to our customers. At the Retail Industry Awards last week, the hard work of our colleagues was recognised by our being awarded Supermarket of the Year for the sixth time in eight years and Convenience Retailer of the Year for the fourth year in a row. We were also delighted to win the Grocer 33 Mystery Shopper Award for 10 of the 16 weeks in the quarter.”
The company currently operates over 1,106 supermarkets and convenience stores, employing approximately 157,000 people. It will announce its 2013/14 Interim Results on 13 November 2013.