Sainsbury's boosted by price pledge and Games
Sainsbury's has reaffirmed its status as one of the sector's best performers this summer after its brand price promise struck a chord with shoppers and it benefited from its sponsorship of the Paralympics.
Its chief executive, Justin King, also said its own-label ranges had delivered a renewed growth spurt, as customers shop around for value and increasingly top up their weekly shop in its fast-growing convenience stores.
During the wet early summer, he said "people had battened down the hatches in June and July after splashing out on the Jubilee". But Mr King said they re-emerged ahead of the Olympics and Paralympics and during the "more normal weather" over the past eight weeks. While Mr King declined to be drawn on the boost Sainsbury's got from sponsoring the Paralympics, he said this event and the Olympics "definitely helped the public's mood" and had "united and inspired the nation". He added: "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."
The grocer, which has 1,066 stores, saw its like-for-like sales rise 1.9 per cent over the 16 weeks to 29 September, which was ahead of City expectations of a 1.4 per cent rise and its 31st consecutive quarter of growth.
Its performance also compares favourably with a 0.1 per cent rise in underlying UK sales at Tesco, the market leader, over a different period.
Jonathan Pritchard, an analyst at Oriel Securities, said: "It remains to be seen how long the goodwill associated with the sponsorship of the Paralympics persists here, but our view is that it will sustain, alongside the strong offer at Sainsbury's these days."
Mr King hailed the contribution of its "brand match" price initiative, which gives customers a money-off coupon at the till if the branded products in their basket would have been cheaper at Tesco and Asda, to its outperformance.
Total sales at Sainsbury's, the UK's third-largest grocer, jumped by 4.3 per cent over the second quarter, boosted by new stores. Its shares rose 5.7p to 352.5p.
Sales of the tablet are set to fall again, say analysts
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
George Lucas criticises the major Hollywood film studios
Does Chris Grayling realise what a vague concept he is dealing with?
Parties threaten resort's image as a family destination
- 3 Are you ready for Crazy Doritos, the red-hot snack food craze sweeping Mexico’s streets?
- 4 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 5 Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Isis in Kobani: US resupplies Kurdish fighters by plane - then Turkey allows reinforcements through its border
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Banksy arrest hoax: Internet duped by fake report claiming street artist's identity has been revealed
Super-sized ships arrive in Britain: How big can they get?
Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
London bus driver 'kicks gay couple off for kissing'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
iJobs Money & Business
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...