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12/01/2006
Sainsbury's reports strong Christmas trading
Supermarket group Sainsbury's has reported stronger sales over the Christmas period in its latest trading figures published today.
The group, Britain's third largest supermarket chain, reported a 5.2% rise in like-for-like sales in the 12 weeks up to the end of December - the fourth quarter of consecutive like-for-like sales growth for the firm.
Sainsbury's said that it had served more than 19 million customers during Christmas week - the most the company had ever served in a single week.
Chief Executive Justin King said: "We prepared for Christmas well, developed outstanding seasonal products, strengthened promotional activity and worked hard to deliver great availability. This was particularly important in fresh product categories, a key area for our regular customers and essential at Christmas.
"Like-for-like sales growth of 5.2% reflects the progress made in this first year of our recovery plans. The customer experience is much improved, but we still need to achieve this at a more acceptable cost."
Sainsbury's is almost half way through a three-year recovery plan, launched by Mr King in October 2004. Mr King said that the firm had been boosted by an improvement in availability and service in the supply chain, which had also been reflected in the company's online home delivery service.
He confirmed that the firm was continuing to reorganise their depot network, with the closure of the Rotherham depot within the next few days. Mr King said that the distribution centre in Northfleet may also no longer be required, due to the firm contracting out its network to Exel in the southeast, and it may close in April.
Mr King also said that the company's £10 million rebranding, launched last year with the slogan 'Try Something New Today' and a new advertising campaign with celebrity chef Jamie Oliver, had "clearly struck a chord" with customers.
Mr King added: "We expect the market to remain highly competitive during quarter four, when we will also be up against tougher comparative figures with the annualisation of sales growth under our recovery plan.
"Investment in the customer offer remains at the heart of all our activities and as previously stated, it is anticipated that the benefits of operational gearing in the business will begin to be delivered in the second half of 2006/07."
(KMcA)
The group, Britain's third largest supermarket chain, reported a 5.2% rise in like-for-like sales in the 12 weeks up to the end of December - the fourth quarter of consecutive like-for-like sales growth for the firm.
Sainsbury's said that it had served more than 19 million customers during Christmas week - the most the company had ever served in a single week.
Chief Executive Justin King said: "We prepared for Christmas well, developed outstanding seasonal products, strengthened promotional activity and worked hard to deliver great availability. This was particularly important in fresh product categories, a key area for our regular customers and essential at Christmas.
"Like-for-like sales growth of 5.2% reflects the progress made in this first year of our recovery plans. The customer experience is much improved, but we still need to achieve this at a more acceptable cost."
Sainsbury's is almost half way through a three-year recovery plan, launched by Mr King in October 2004. Mr King said that the firm had been boosted by an improvement in availability and service in the supply chain, which had also been reflected in the company's online home delivery service.
He confirmed that the firm was continuing to reorganise their depot network, with the closure of the Rotherham depot within the next few days. Mr King said that the distribution centre in Northfleet may also no longer be required, due to the firm contracting out its network to Exel in the southeast, and it may close in April.
Mr King also said that the company's £10 million rebranding, launched last year with the slogan 'Try Something New Today' and a new advertising campaign with celebrity chef Jamie Oliver, had "clearly struck a chord" with customers.
Mr King added: "We expect the market to remain highly competitive during quarter four, when we will also be up against tougher comparative figures with the annualisation of sales growth under our recovery plan.
"Investment in the customer offer remains at the heart of all our activities and as previously stated, it is anticipated that the benefits of operational gearing in the business will begin to be delivered in the second half of 2006/07."
(KMcA)
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